1. Why Do Some People Choose To Exceed Speed Limits Whilst Others Do Not?

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Why do some people choose to exceed speed limits whilst others do not?
Despite a saturation of government campaigns and tough penalties, some motorists consciously choose to exceed speed limits. Many people label such drivers as irresponsible ‘hoons’ that seek an adrenaline rush from travelling at high velocities. Whilst this may be true for some drivers, this widely held view is a simplistic interpretation of the complex decision making process that many drivers, possibly unknowingly, undertake prior to exceeding the speed limit. Economic theory is a useful tool in explaining why some motorists choose to do this – as will be demonstrated below. A seemingly simple issue has a surprisingly complex economic explanation.
In many cases, exceeding the speed limit allows people to arrive at their destination sooner. This can represent a …show more content…

Aside from noise and air pollution, speeding motorists may endanger the lives of other road users. Many decades ago, the government tried to combat these externalities with mandatory fines. Some motorists that are on relatively high incomes and choose to exceed speed limits may have an inelastic response to generally high fines that are indexed for inflation each year; other motorists will continue to speed no matter what the monetary cost is. In response to this, the Victorian government introduced a demerit point system where traffic offenses, including exceeding the speed limit, are penalised with the accrual of demerit points as well as being fined. Once a threshold is reached, the driver may have their driving license suspended for a prescribed period. The demerit point system affects all motorists equally (i.e. irrespective of income). Assuming that most motorists regard their drivers license (right to drive) as precious, there is a significant disincentive for the vast majority of drivers (that wish to legally drive) to exceed the speed

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