From Duke: The behavioral economics of drunk driving

J Health Econ. 2014 Feb 11;35C:64-81. doi: 10.1016/j.jhealeco.2014.01.005. [Epub ahead of print]

The behavioral economics of drunk driving.

Sloan FA1, Eldred LM2, Xu Y3.

Author information

• 1Department of Economics, Duke University, United States. Electronic address: fsloan@duke.edu.
• 2Department of Economics, Duke University, United States. Electronic address: lchepke@duke.edu.
• 3Department of Economics, Duke University, United States. Electronic address: yanzhi.xu@duke.edu.

Abstract

This study investigates whether drinker-drivers attributes are associated with imperfect rationality or irrationality. Using data from eight U.S. cities, we determine whether drinker-drivers differ from other drinkers in cognitive ability, ignorance of driving while intoxicated (DWI) laws, have higher rates of time preference, are time inconsistent, and lack self-control on other measures. We find that drinker-drivers are relatively knowledgeable about DWI laws and do not differ on two of three study measures of cognitive ability from other drinkers. Drinker-drivers are less prone to plan events involving drinking, e.g., selecting a designated driver in advance of drinking, and are more impulsive. Furthermore, we find evidence in support of hyperbolic discounting. In particular, relative to non-drinker-drivers, the difference between short- and long-term discount rates is much higher for drinker-drivers than for other drinkers. Implications of our findings for public policy, including incapacitation, treatment, and educational interventions, are discussed.