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An exploration of the offset hypothesis using disaggregate data: The case of airbags and antilock brakes

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  • Clifford Winston
  • Vikram Maheshri
  • Fred Mannering

Abstract

The offset hypothesis predicts consumers adapt to innovations that improve safety by becoming less vigilant about safety. Previous tests have used aggregate data that may confound the effect of a safety policy with those consumers who are most affected by it. We test the hypothesis using disaggregate data to analyze the effects of airbags and antilock brakes on automobile safety. We find that safety-conscious drivers are more likely than other drivers to acquire airbags and antilock brakes but these safety devices do not have a significant effect on collisions or injuries, suggesting drivers trade off enhanced safety for speedier trips. Copyright Springer Science + Business Media, LLC 2006

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  • Clifford Winston & Vikram Maheshri & Fred Mannering, 2006. "An exploration of the offset hypothesis using disaggregate data: The case of airbags and antilock brakes," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 83-99, March.
    • Handle: RePEc:kap:jrisku:v:32:y:2006:i:2:p:83-99
    DOI: 10.1007/s11166-006-8288-7
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    4. Abay, Kibrom A. & Paleti, Rajesh & Bhat, Chandra R., 2013. "The joint analysis of injury severity of drivers in two-vehicle crashes accommodating seat belt use endogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 74-89.
    5. Nicholas Wilson & Wentao Xiong & Christine Mattson, 2011. "Is Sex Like Driving? Risk Compensation Associated with Randomized Male Circumcision in Kisumu, Kenya," Center for Development Economics 2011-09, Department of Economics, Williams College, revised Jan 2012.
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    14. Donald N. Dewees, 2016. "Are Automated Vehicles Coming at the Right Speed?," Working Papers tecipa-564, University of Toronto, Department of Economics.
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    18. Xiong, Yingge & Tobias, Justin L. & Mannering, Fred L., 2014. "The analysis of vehicle crash injury-severity data: A Markov switching approach with road-segment heterogeneity," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 109-128.
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