EffectProbability & risk · Cognitive Bias · Entry 122
Peltzman Effect – when feeling safe makes you take more risks
Do you act more recklessly when you feel safe, even though the risk remains? That’s Peltzman Effect – the tendency to offset increased safety by engaging in riskier behavior.
Where it can show up
- Driving – people drive more aggressively in cars with advanced safety features than in older models.
- Sports & outdoor activities – skiers or cyclists go faster when wearing protective gear, assuming it will save them.
- Finance – investors take bigger risks when they believe their losses are insured.
A practical countermeasure
- Safety doesn’t make you invincible – protection reduces risk but doesn’t eliminate it.
- Monitor your behavior – don’t let a sense of security lead to reckless decisions.
- Think about consequences – if you’re taking bigger risks because of added safety, ask yourself if it’s really worth it.