Showing posts with label risk compensation. Show all posts
Showing posts with label risk compensation. Show all posts

6 July 2020

Human systems are rife with unintended consequences

CorporateNature No 129

As the name suggests, the sociological term “unintended consequences” refers to unforeseen  outcomes of purposeful actions. They occur in complex social systems due to the large number of variables involved in the functioning of these systems.

In the simplified world of Newtonian physics, for every action in nature, there is an equal and opposite reaction (Newton's 3rd Law of Motion). In such a system, outcomes are easy to predict.

In contrast, human social systems are complex, sometimes bordering on chaotic, so the action-reaction equation does not necessarily hold true. More often than not, there are unintended consequences.


A classic source of unintended consequences is the Peltzman EffectThe Peltzman Effect, or risk compensation, occurs after the implementation of safety measures intended to reduce injury or death (e.g. bike helmets, seat belts, etc.). While people may feel safer than they really are, they take additional risks which they would not have taken without the safety measures in place. This may result in an increase in mortality, rather than the decrease that was initially intended.

Here are some examples of the Peltzman Effect:

1. Anti-lock brakes
Anti-lock brakes were introduced in Germany in the late 1970s. Contrary to government expectations, instead of decreasing fatal car accidents by 10-15%, the drivers of cars fitted with anti-lock brakes became more likely to engage in risky driving. Studies found that drivers would trust their new braking technology too much and as a result would curves at a higher speed, which increased rollovers and accidents.

2. American football helmets 
Helmets became mandatory in American football in 1943 and the risk of injury was expected to go down. Indeed, the helmets decreased the number of broken noses, teeth and jaws. However, concussion and spinal injuries actually increased and broken necks saw a staggering rise by 400%. The reason for these counterintuitive statistics was the better protection that helmets gave to players, so the players actually started using the helmets as an offensive weapon, just like battering rams.

3. Airbags and children left in cars
Airbags are another pertinent example of the Peltzman Effect. Passenger-side airbags were intended to increase safety but actually started hurting and killing child passengers as children were vulnerable to being hit by a deploying airbag during a collision. This led to the child seat being moved to the back of cars, which in turn resulted in another unexpected consequence: an increase in the number of babies and children inadvertently left behind in locked vehicles.

Volvo-122-coupe-1.jpg
1959 Volvo 122, the first mass-produced car with seatbelts as standard equipment
(image source: Wikipedia