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Risk Compensation

   Also found in: Wikipedia 0.01 sec.
Risk Compensation
The adjustment of individual behaviour in response to perceived changes in risk. People tend to behave more cautiously if their perception of risk or danger increases, and less cautiously when they feel 'safer' or more protected
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Three models suggested risk compensation by circumcised men and their partners would only have a 'small effect' at the population level, unless it was to the extent of complete abandonment of condoms.
Circumcision significant in HIV prevention by Pebody, Roger; Farham, Bridget / CME: Your SA Journal of CPD
As a result, the principal has to pay additional inequity rent and risk compensation for inequity aversion to the agents, which both are the incentive efficiency losses resulted from inequity aversion and have never been explored by the standard contract theory, besides information rent and risk compensation for asymmetric information, which both have been investigated deeply in the standard contract theory.
Joint contract under inequity aversion by Wei, Guangxing; Qin, Yanhong / Journal of Service Science and Management (JSSM)
This may be due in part, to a phenomenon known as risk compensation, meaning that when one uses a risk-reduction 'technology' such as condoms, one often loses the benefit (reduction of risk) by 'compensating' or taking greater chances than one would take without risk-reduction technology.
Why the Pope is right by Shea, John B. / Catholic Insight
 
 
 
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