Advertisement

European Journal for Security Research

, Volume 4, Issue 2, pp 273–286 | Cite as

Behavioural Economics of Security

  • Alexander SchulanEmail author
Original Article

Abstract

For years, the field of behavioural psychology has shaped the understanding of human behaviour. More and more findings of that discipline are also applied in economics. However, potential implications for the specific area of economics of security have been widely ignored. This paper transfers empirically proven phenomena of behavioural psychology, such as decision heuristics and fallacies, to the economics of security. In particular, we will focus on the subjective perception of risks and its implications on the evaluation of security solutions. Our paper provides an overview on aspects of behavioural psychology in economics of security. We argue that findings from behavioural psychology bear the potential to influence the assessment of security measures, and therefore need to be clearly identified for ensuring the efficient allocation of limited budgets for security solutions. In our view, sensitising decision-makers in the field of security for aspects of behavioural psychology is useful and conducive to enhance the management of risks for public security.

Keywords

Economics of security Economics of safety Behavioural psychology Efficient risk management 

Notes

Acknowledgements

The author would like to thank Florian Schneider for excellent research assistance and the anonymous reviewer for very valuable and helpful comments.

Funding

This research was funded in the context of the support guidelines ’New Economic Aspects’ of the Federal Ministry of Education and Research within the framework of the program ’Research for Civil Security' of the German Federal Government.

References

  1. Bazerman MH, Moore DA (2008) Judgment in managerial decision making. Wiley, New YorkGoogle Scholar
  2. Berner ES, Graber ML (2008) Overconfidence as a cause of diagnostic error in medicine. Am J Med 121:2–23CrossRefGoogle Scholar
  3. Boers K (1991) Kriminalitätsfurcht—Über den Entstehungszusammenhang und die Folgen eines sozialen Problems. Centaurus-Verlagsgesellschaft, PfaffenweilerGoogle Scholar
  4. Entorf H (2015) Der Wert der Sicherheit: Anmerkungen zur Ökonomie der Sicherheit. In: Zoche P, Kaufmann S, Arnold H (eds) Sichere Zeiten? Gesellschaftliche Dimensionen der Sicherheitsforschung. Lit Verlag, Berlin, pp 375–391Google Scholar
  5. Gabriel U, Greve W (2003) The psychology of fear of crime. Conceptual and methodological perspectives. Br J Criminol 43(3):600–614CrossRefGoogle Scholar
  6. Gaissmaier W, Gigerenzer G (2012) 9/11, Act II: a fine-grained analysis of regional variations in traffic fatalities in the aftermath of the terrorist attacks. Psychol Sci 23(12):1449–1454CrossRefGoogle Scholar
  7. Gilovich T, Vallone R, Tversky A (1985) The hot hand in basketball: on the misperception of random sequences. Cogn Psychol 17:295–314CrossRefGoogle Scholar
  8. Goldberg J, Nitzsch RV (1999) Behavioral finance, Gewinnen mit Kompetenz, 2nd edn. FinanzBuch Verlag, MünchenGoogle Scholar
  9. Jain AK, Flynn P, Ross AA (eds) (2008) Handbook of biometrics. Springer, New YorkGoogle Scholar
  10. Jain AK, Nandakumar K, Ross A (2016) 50 Years of biometric research: accomplishments, challenges and opportunities. Pattern Recogn Lett 79:80–105CrossRefGoogle Scholar
  11. Kahneman D (2012) Thinking, fast and slow. Penguin Books, LondonGoogle Scholar
  12. Kahneman D, Tversky A (1979) Prospect theory: an analysis of decision under risk. Econometrica 47:263–291CrossRefGoogle Scholar
  13. Kahneman D, Tversky A (1984) Choices, values, and frames. Am Psychol 39:341CrossRefGoogle Scholar
  14. Kahneman D, Tversky A (2000) Choices, values, and frames. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  15. Levin IP, Schneider SL, Gaeth GJ (1998) All frames are not created equal: a typology and critical analysis of framing effects. Organ Behav Hum Decis Process 76(2):149–188CrossRefGoogle Scholar
  16. Muth JF (1961) Rational expectations and the theory of price movements. Econometrica 29:315–335CrossRefGoogle Scholar
  17. Ross M, Sicoly F (1979) Egocentric biases in availability and attribution. J Pers Soc Psychol 37:322–336CrossRefGoogle Scholar
  18. Schulan A, Entorf H (2017) Status Quo der Bewertung von Sicherheitsmaßnahmen—Evidenz aus Experteninterviews. URL: https://www.4d-sicherheit.de/site/assets/files/1063/170828_4d_sicherheit_status_quo_der_bewertung_von_sicherheitsmassnahmen.pdf. Accessed 15 May 2019
  19. Simon HA (1955) A behavioral model of rational choice. Q J Econ 69(1):99–188CrossRefGoogle Scholar
  20. Thaler R, Sunstein C (2009) Nudge, improving decision about health, wealth and happiness. Penguin Books, LondonGoogle Scholar
  21. Tversky A, Kahneman D (1974) Judgement under uncertainty: heuristics and biases. Science 185:1124–1131CrossRefGoogle Scholar
  22. Tversky A, Kahneman D (1981) The framing of decision and the psychology of choice. Science 211:453–458CrossRefGoogle Scholar
  23. Wainer H (2007) The most dangerous equation. Am Sci 95:249–256CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Goethe University FrankfurtFrankfurt am MainGermany

Personalised recommendations