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Everything about All-way Stop totally explained

==North America==
   An all-way stop is an intersection system used predominantly in the USA and Canada, where traffic approaching it from all directions is required to stop before proceeding through the intersection. Such intersections are most often found in the form of a 4-way stop, but may also sometimes be a 3-way stop (either if one road ends there, or if one street involved is one-way), or a 2-way stop if both streets are one way. These intersections are found where roads of considerably equal importance meet each other, but the level of traffic present at the intersection doesn't justify a traffic light, or in a location where previously, a one- or two-way stop was present, but where a bad accident occurred, and for safety reasons, the jurisdiction has decided to change the existing signs.
   A motorist approaching an all-way stop is always required to come to a full stop. After a full-stop has been made, all vehicles present at any point of the intersection have the right-of-way to proceed through the intersection in the order they've reached the intersection; if two or more vehicles arrive at the same time the driver on the left yields to the driver on the right (External Link).

Worldwide Comparisons

Most countries outside North America, particularly in Europe, simply don't have intersections where all users have to stop whenever they're approached. As the most restrictive type of controlled intersection in North America, the all-way stop's equivalent is realized in a number of ways elsewhere. In countries where 'priority to the right' is observed as a default rule, the most restrictive type of intersection can be an uncontrolled one. It usually only occurs in conjunction with low-volume roads or as a traffic calming device that's similar in terms of desired effect, but not methodology to an all-way stop . An intersection type considered to be complementary (or alternative, depending on location) to the all-way stop and in fact used on six continents, is the roundabout. In particular the UK, amongst others, has adopted the roundabout instead of the all-way stop as the most restrictive type of intersection. There are a number of key differences in approach:

Slowing vs. Maintaining the Speed of Traffic

The roundabout permits arriving traffic to proceed without stopping provided there's no priority traffic on the junction (yield to traffic on the roundabout), whereas the all-way stop requires traffic to stop at the junction even when there's no other traffic in the vicinity at all.
   Therefore a side-effect of the all-way stop is to slow traffic, particularly useful in residential areas. The roundabout doesn't slow traffic unless caused by traffic congestion, and in uncongested situations a roundabout is even quicker to navigate than a traditional yield (Give Way) junction.
   The frequent stopping of vehicles associated with all-way stops reduces their efficiency and increases wear in comparison to the relatively constant speed of a vehicle using roundabouts. This may help to explain the prominence of roundabouts in Europe, where fuel is typically more expensive than in North America.

Use in Restricted Spaces

The all-way stop works well for intersections that are small in size, whereas the roundabout requires room for a "central island reservation (typically circular) where no traffic is permitted, thus making it difficult to implement in smaller spaces. A typical all-way stop will be no bigger than a square the width of the approaching roads, whereas a roundabout must allow for this size plus the island reservation. The mini roundabout attempts to overcome this by using a painted circle which traffic is permitted to drive over.

Use in Larger Junctions

All-way stops are generally not used in junctions with more than four ways, due to the difficulty in judging who has next right of way. Traffic lights are used in bigger junctions. Roundabouts, on the other hand, scale well to larger intersections, and it isn't unusual to see roundabouts with seven or eight roads in Europe. In busy areas, traffic lights can be used in combination with a roundabout, either permanently or only at peak periods, to control traffic coming on to, or rotating around the roundabout.

Driver Psychology

All-way stops are observed with varying degrees of compliance. One uninformed driver can easily disrupt the ideal flow through the intersection, which isn't unlikely given the more complex rules for its users and the multitude of possible right-of-way of errors that can be made. Roundabouts don't suffer from such ambiguities. The only possible mistakes one can make in a roundabout are a failure to yield on entry or an unnecessary yield while in the roundabout. The simple rules and physics of a roundabout all but eliminate many of the dangerous movements associated with traditional crossroads; roundabouts command driver respect and are less complex than a all-way stops, but they may give drivers a false sense of security.
   Nonetheless, stop signs at large are far more prominent in North America, notably the US, than in countries that don't use all-way stops. The colloquialism that 'familiarity breeds contempt' can help to explain why stop signs are almost universally (in terms of location, not users) disrespected in the US. For example: the criteria for the placement of an all-way stop might only take into account peak conditions, meaning a stop might only be necessary at peak times at an otherwise highly visible intersection. Legally obligated, but ostensibly unnecessary, frequent stopping can indirectly encourage faster and possibly illegal driving between stop signs. A driver traversing mostly roundabouts will, having likely not stopped, not have an incentive to speed and will be more receptive to a stop sign placed for actual safety needs, like because a yield/give way sign is insufficient. Despite the law, stop signs in the US are indeed violated in all manners, usually by simply not completely stopping, what is known as a 'rolling' or 'California' stop amongst other names.

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