Economist Sam Peltzman showed how risk compensation works: people tend to act more _____today if they feel that they are safer than yesterday.

Name: Economist Sam Peltzman showed how risk compensation works: people tend to act more _____today if they feel that they are safer than yesterday.
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Question

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Peltzman's theory of risk compensation suggests that when people feel safer, they may engage in riskier behaviors because they perceive the level of risk to have decreased, leading them to act more dangerously.

Economist Sam Peltzman Showed How Risk Compensation Works: People Tend