Abstract
Recent experimental research suggests that decision makers tend to overweight low-probability outcomes in choices based on a description of the possible outcomes, but tend to underweight low-probability events in decisions from experience. The current paper argues that these tendencies imply that in certain cases people buy safety devices and plan to use them, but fail to do so. A study of Israeli drivers shows that the majority of the respondents who bought a safety device for the car (a car radio with a detachable panel), “learned” to stop using it within a year after purchasing the device. This finding is discussed in the context of the expected effect of insurance and different safety enhancing interventions.
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