Unintended unlucky consequences

A speed-camera that automatically enters those driving below the speed limit into a lottery? Interesting idea, more carrot than stick so to speak.

Have they considered that this attracts people to drive by it slowly rather than attract people driving past it to drive slowly?  Instant congestion. Economics is all about incentives and often about unintended consequences.

Yes, I know they probably weren’t serious about this idea.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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    1. That’s a really good point. Part of me likes the idea that just by obeying the law I have a chance to win big.

      Of course, and as a complete aside, this still doesn’t change the questionable point of whether focussing so much on speeding is an efficient way to make our roads safer.

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