The risk that the presence of a contract will affect on the behavior of one or more parties. The classic example is in the insurance industry, where coverage against a loss might increase the risk-taking behavior of the insured.
Related information about moral hazard:
- Moral hazard - Wikipedia, the free encyclopedia
In economic theory, a moral hazard is a situation where a party will have a tendency to take risks because the costs that could incur will not be felt by the party ...
- Moral Hazard Definition | Investopedia
The risk that a party to a transaction has not entered into the contract in good faith , has provided misleading information about its assets, liabilities or credit ...
- Economics 101: Moral Hazard - YouTube
Jan 11, 2010 ... This CF&P Foundation's Economics 101 video discusses the Moral Hazard, which occurs when bad choices are subsidized. This often ...
- Moral Hazard and the Financial Crisis - Cato Institute
the role of moral hazard—is central to the controversy over the causes of the present crisis ... moral hazard is fundamental to understanding how the economy ...
- Moral Hazard as the Flip Side of Self-Reliance - NYTimes.com
Feb 25, 2012 ... As an economic concept, “moral hazard” means that people are apt to take undue risks if they don't have to bear the consequences. But it's also ...
- moral hazard - The Free Dictionary
A risk to an insurance company resulting from uncertainty about the honesty of the insured. moral hazard. n. (Business / Insurance) Insurance a risk incurred by ...
- Moral Hazard and Adverse Selection
They should make less effort to avoid misfortune, and this change in behavior is called moral hazard. For example, if an accident costs a person $1000 but ...
- Moral Hazard - Do Government Bailouts Encourage Even Riskier ...
In-depth Coverage of Moral Hazard - Do Government Bailouts Encourage even Riskier Behavior? by the Online NewsHour.