What Is the Moral Hazard Problem? The moral hazard problem is when one party in a deal or transaction is more comfortable taking risks, whether physical or financial, than they otherwise would have been because they know that they will not be responsible for negative consequences. Why Is It C...
For example, when a property owner obtains insurance on a property, the contract is based on the idea that the property owner will avoid situations that may damage the property. The moral hazard exists that the property owner, because of the availability of the insurance, may be less inclined...
The moral hazard situation existing between the banks and the US Government is a true example of both one party (the bank) taking advantage of another (the federal government, and ultimately, the taxpayers) and misinformation (the banks are presenting themselves as having amended their policies to...
Example Sentences Some of the concern stems from what climate researchers call the “moral hazard” problem — the possibility of humanity geoengineering its way out of climate impacts could discourage decarbonization efforts. From Salon They routinely engage in political and other behavior that constitut...
1.That leads us tomoral hazard. 它导致了道德风险。 「经济 Crash Course」评价该例句:好评差评指正 经济Crash Course 2.The phrase " Too big to fail" is a perfect example ofmoral hazard. " 大而不倒" 这句话是道德风险完美例子。 「经济 Crash Course」评价该例句:好评差评指正 ...
How is moral hazard relevant to regulating banks? How can being "too big to fail" create a moral hazard problem? What are the Moral hazard affecting employees and the organization? What is an example of moral hazard in a clothing company?
Residual claimancy is generally required in order for there to bemoralhazard, which is a problem typical of information asymmetry. From Wikipedia This example is from Wikipedia and may be reused under a CC BY-SA license. Critics charge that strict liability creates risk ofmoralhazard. From Wikipe...
the increased risk of immoral behavior, and thus a negative outcome (“hazard”), because the person who caused the problem doesn’t suffer the full (or any) consequences, or may actually benefit.Such a concern typically arises in the context of a contract (for example, an insurance policy...
The most popular solution to the moral hazard problem is to make people pay a share of the costs of hazardous or risky behavior. In auto insurance markets, this comes in the form of a deductible that forces the car owner to pay for minor damage in full and to pay a relatively large sh...
9、This is the final step in addressing the problem of moral hazard.这是解决道德风险问题的最后一步。10、Application of Group Dynamics on College Moral Education Teaching群体动力论在大学德育教学中的应用 11、activity that transgresses moral or civil law.违反道德和法律的动作行为。12、a ...