00:01
So here we have a story about what an economist would call moral hazard, right? so the first thing is we pass a bike law, right, for helmets.
00:12
Obviously, in part one here or part a, helmets decrease the probability of injury.
00:27
That is what helmets do.
00:28
They protect you.
00:29
They decrease the probability of injury.
00:34
That means, however, that the expected cost of an accident has fallen.
00:44
When you are safer, you know that if you get into an accident, it is going to hurt less.
00:52
So b, therefore we have fewer injuries is going to incentivize less safe riding.
01:18
Right.
01:19
So we have decrease...