Abstract
A SIMPLE UTILITY MAXIMIZATION MODEL IS PRESENTED TO ILLUSTRATE THAT RISK COMPENSATION IS A NATURAL PART OF HUMAN BEHAVIOR WHEN INDIVIDUALS PURSUE MULTIPLE GOALS WITH LIMITED RESOURCES. IN THIS POSITIVE ECONOMIC MODEL DRIVER SAFETY EFFORT IS DETERMINED BY A BALANCE BETWEEN REDUCED RISK AND INCREASED DISUTILITY COST. CHANGES WHICH AFFECT THE BALANCE INDUCE DRIVERS TO CHANGE THEIR OWN SAFETY EFFORTS. UNDER PLAUSIBLE CONDITIONS A CHANGE IN EXOGENOUS SAFETY, WHICH IS BEYOND DRIVER CONTROL, CAUSES A COMPENSATORY CHANGE IN DRIVER EFFORT IN THE OPPOSITE DIRECTION. A SAMPLE OF SPECIAL SEAT BELT USE STUDIES ILLUSTRATIVELY INDICATES THE USEFULNESS OF THE MODEL.(Author/publisher).