Search results
- DictionaryMor·al haz·ard/ˈmôrəl ˈhazərd/
noun
- 1. lack of incentive to guard against risk where one is protected from its consequences, e.g. by insurance.
Powered by Oxford Languages
Yahoo Web Search
- Moral hazard
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 ... Wikipedia
Searches related to define moral hazard
