Moral hazard

id: moral-hazard-182-6762513
title: Moral hazard
text: In economics, a moral hazard is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. For example, when a corporation is insured, it may take on higher risk knowing that its insurance will pay the associated costs. A moral hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place. Moral hazard can occur under a typ
brand slug: wiki
category slug: encyclopedia
description: Increases in the exposure to risk when insured, or when another bears the cost
original url: https://en.wikipedia.org/wiki/Moral_hazard
date created: 2003-01-28T06:52:00Z
date modified: 2024-09-06T12:07:43Z
main entity: {"identifier":"Q44454","url":"https://www.wikidata.org/entity/Q44454"}
image:
fields total: 13
integrity: 15

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