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moral hazard
(redirected from Moral hazards)

   Also found in: Financial, Wikipedia 0.01 sec.
moral hazard
n.
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 an insurance company with respect to the possible lack of honesty or prudence among policyholders
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.moral hazard - (economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance); "insurance companies are exposed to a moral hazard if the insured party is not honest"
economic science, economics, political economy - the branch of social science that deals with the production and distribution and consumption of goods and services and their management
endangerment, hazard, jeopardy, peril, risk - a source of danger; a possibility of incurring loss or misfortune; "drinking alcohol is a health hazard"


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In this conventional view, the parties to an insurance contract cannot be trusted to minimize moral hazards on their own.
The 11 articles here use rational choice institutional analyses and principle-agent models describe their research on how states develop and deploy standard chains of delegation, focusing on the moral hazards, accountability, a theory of efficient delegation and another that explains why public administrations develop bureaucracies.
Permitting the commercial marketplace to minimize moral hazards is one way to improve business efficiency.
 
 
 
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