Did I mention that 4 out of 6 of my professors this semester are economists? Well if you've ever been in an econ class for more than 20 minutes, you've probably heard an economist talking about the power of incentives. And he/she has probably used the example of seat belts in cars. Since the government mandated the installation and use of seat belts, the rates of accidents has gone up (though the number of fatalities from automobile accidents has gone down). The idea is that because drivers know they are less likely to die in an accident, they drive more recklessly. (Unfortunately this has consequences for the pedestrian who is not made safer by the seat belts, but is made less safe by the reckless driving). In any case, I was doing some readings for class last night and came across this. Enjoy.
"If you find it hard to believe that people drive less carefully when their cars are safer, consider the proposition that people drive more carefully when their cars are more dangerous ... If the seat belts were removed from your car, wouldn't you be more cautious in driving? Carrying this observation to the extreme, Armen Alchian of the University of California at Los Angeles has suggested a way to bring about a major reduction in the accident rate: Require every car to have a spear mounted on the steering wheel, pointing directly at the driver's heart."
They say too that the threat of losing something is a more powerful incentive than the promise of getting something. I guess the spear idea fits with that.
ReplyDeleteI want to pick who gets the spears installed. That'll be my job. You can help.
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