Posted by Todd Zywicki:
THE CELL PHONE MENACE:

   [1]New paper concludes that drivers impaired by driving while talking
   on cell phones are more dangerous that drunk drivers. The abstract:
   We used a high-fidelity driving simulator to compare the performance
   of cell-phone drivers with drivers who were legally intoxicated from
   ethanol. When drivers were conversing on either a hand-held or
   hands-free cell-phone, their braking reactions were delayed and they
   were involved in more traffic accidents than when they were not
   conversing on the cell phone. By contrast, when drivers were legally
   intoxicated they exhibited a more aggressive driving style, following
   closer to the vehicle immediately in front of them and applying more
   force while braking. When controlling for driving conditions and time
   on task, cell-phone drivers exhibited greater impairment than
   intoxicated drivers. The results have implications for legislation
   addressing driver distraction caused by cell phone conversations.
   It has always struck me that the real problem with driving and talking
   on cell phones is an adverse selection problem. Basically the argument
   goes like this. Driving and talking on a cell phone is clearly riskier
   behavior than not talking on the phone while driving. Given that, in
   general the people who are most likely to talk and drive are those who
   either are least concerned about externalizing the costs of their
   risky driving on others or those who tend to underestimate the risk
   associated with driving in the first place (i.e., below-average
   drivers). So in other words, it is precisely those who are the worst
   drivers in the first place who are most likely to ignore the risks
   associated with talking while driving. Whereas those who are ceteris
   paribus the best drivers are the ones who are most likely to recognize
   and account for the risk associated with talking while driving. Same
   analysis goes for those who eat, put on their makeup, and change cd's
   while driving.
   So you have this downward spiral where the worst drivers do the
   riskiest things while driving. And at least some of the cost of risky
   driving behavior is borne as an externality by others. I doubt that
   banning cell phones while driving is efficient either because there
   are legitimate uses of course, so it may be a matter of trying to
   develop social norms that discourage people from gabbing while
   driving.
   And this doesn't even account for them driving slower or poking along
   in the passing lane oblivious to the world around them because of
   their cell-phone conversations.

References

   1. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=570222

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