Citation

Discussion Paper Details

Please find the details for DP13784 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Effective policies and social norms in the presence of driverless cars: Theory and experiment

Author(s): Antonio Cabrales, Ryan Kendall and Angel Sánchez

Publication Date: June 2019

Keyword(s):

Programme Area(s): Industrial Organization, Labour Economics and Public Economics

Abstract: We consider a situation where driverless cars operate on the same roads as human-driven cars. What policies effectively discourage unsafe (fast) drivers in this mixed-agency environment? We develop a game theoretic model where driverless cars are the slowest and safest choice whereas faster driving speeds lead to higher potential payoffs but higher probabilities of accidents. Faster speeds also have a negative externality on the population. The model is used to create four experimental policy conditions. We findt hat the most effective policy is a mechanism where the level of punishment (to fast drivers) is determined endogenously within the driving population.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13784

Bibliographic Reference

Cabrales, A, Kendall, R and Sánchez, A. 2019. 'Effective policies and social norms in the presence of driverless cars: Theory and experiment'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13784