
Comparing the “Uncool Index” to the S&P
February 11, 2026by Jenna C, ’26

Dear Jenna,
A few months ago, my family got a car with the newest safety features: lane assist, automatic braking, blind-spot monitoring, and just about every warning system you can imagine. Ever since then, my husband seems more comfortable speeding, checking his phone, and paying less attention because the car will “step in” if something goes wrong. I always assumed that adding safety features would make people more careful, not less. Why does feeling safer sometimes lead people to take more risks instead of fewer?
From,
Confused by Common Sense

Dear Confused by Common Sense,
This is something many people notice. When safety measures are added, we expect behavior to improve automatically. Intuitively, more protection should mean more caution. But in reality, people often respond in the opposite way,
In economics, this is known as the Peltzman Effect. The Peltzman Effect describes how people adjust their behavior when they feel safer, often by taking on more risk. When new safety features are introduced, the consequences of risky behavior feel smaller. Because downside feels reduced, people become more comfortable driving faster, paying less attention, or pushing boundaries they previously avoided.
This connects directly to the Law of Demand. The Law of Demand states that when the price of something falls, people tend to demand more of it. Here, the “price” is not money, but the potential cost of being reckless. When safety technology lowers the chance or severity of negative outcomes, risky behavior becomes cheaper. Since the cost feels lower, people are more willing to engage in it, just as they would buy more of a product when it is on sale.
This does not mean safety regulations or technology are ineffective. They still reduce injuries and save lives. However, they work best when they are paired with systems that keep the cost of dangerous behavior high. Features like disabling phone notifications while driving or creating friction around distractions raise the price of risk again, which reduces how much people are willing to take.
At the end of the day, people aren’t trying to make bad choices. They’re just responding to what feels safer or easier, which can lead to behavior we didn’t anticipate.
Best of Luck,
Jenna
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