Zero-risk bias
Encyclopedia
Zero-risk bias occurs when individuals value complete elimination of a risk, however small, to a reduction in a greater risk. That is, individuals may prefer small benefits that are certain to large ones that are uncertain, regardless of the size of the "certain" benefit.
An example is the Delaney clause
of the Food and Drug Act of 1958, which stipulated a total ban on synthetic carcinogenic food additives.
Zero-risk bias occurs because individuals worry about risk, and eliminating it entirely means that there is no chance of harm being caused. What is economically efficient and possibly more relevant, however, is not bringing risk from 1% to 0%, but from 50% to 30% (for example).
It is related to the concept of cognitive closure (psychology), and it can also be explained in terms of a tendency to think in terms of proportions rather than differences. When a risk is reduced to zero, 100% of the risk is removed.
An example is the Delaney clause
Delaney clause
The Delaney Clause is a 1958 amendment to the Food, Drugs, and Cosmetic Act of 1938, named after Congressman James Delaney of New York.It said:...
of the Food and Drug Act of 1958, which stipulated a total ban on synthetic carcinogenic food additives.
Zero-risk bias occurs because individuals worry about risk, and eliminating it entirely means that there is no chance of harm being caused. What is economically efficient and possibly more relevant, however, is not bringing risk from 1% to 0%, but from 50% to 30% (for example).
It is related to the concept of cognitive closure (psychology), and it can also be explained in terms of a tendency to think in terms of proportions rather than differences. When a risk is reduced to zero, 100% of the risk is removed.