On 26-Jan-2005, "riverman" wrote:

Providing such things as insurance cause people to assume higher risks; a
process called "moral hazard".

Also called "risk homeostasis". When something is used or changed to
decrease risk, people tend to increase the risk to its original level
by changing something else. Unfortunately, since people are _extremely_
poor at assessing risk, their attempts to maintain a level of risk
often turn into increased risk. Perfect example - all the four-wheel-
drive SUVs in the ditches along the roads in winter here in the Great
White North.

Risk homeostasis has been discussed a lot in the context of kayaking
on the Paddlewise mailing list. It's a big problem unless the paddler
is aware of it and compensates.

Mike

PS - I've also heard it called "Volvo Syndrome" - put someone in a
safer car and they drive like idiots.