Obstructing Traffic During Traffic Accidents

EconEye Admin

1 year ago

In the UAE, slowing down to watch a crash can result in a fine of up to 1,000 dirhams, the equivalent of $270 U.S. dollars. The curiosity to watch a car accident delays ambulances, endangers lives, and prevents other drivers from reaching their destinations on time.—khaleejtimes.com

Answer the following questions to check your understanding of the story.

Why does a driver slow down to watch a car accident scene?

A driver slows down because ___________.

a) everyone is interested in watching emergency vehicles

b) it is free to watch

c) curiosity is insatiable so its benefit is unlimited

d) the benefit of satisfying his curiosity exceeds the cost of arriving later at his destination

Wrong! - Is slowing down to watch a car accident scene really free? Is everyone interested in watching emergency vehicles? Is curiosity really insatiable?

Well Done! - A driver who slows down to watch a car accident scene is considering only his private benefit—satisfaction of curiosity—and his private cost—arriving late at his destination. A driver slows down when benefit exceeds cost.

How does the penalty for slowing down to watch a car accident scene change drivers’ behavior?

a) Fewer drivers slow down to watch the accident scene.

b) All drivers stop slowing down to watch the accident scene.

c) No drivers change their behavior.

d) Any driver who can afford the fine will slow down to watch the accident scene.

Wrong! - The penalty increases a driver’s marginal cost of slowing down. Won’t some drivers realize that their marginal cost of slowing down exceeds their marginal benefit? Does a driver consider only whether he can afford to pay the fine?

That's Right! - The penalty increases a driver’s marginal cost of slowing down. Because a driver slows down only when marginal cost is less than or equal to marginal benefit, the penalty decreases the number of drivers who slow down to watch the accident.

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