Moral Hazard

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Moral hazard

The risk that the existence of a contract will change the behavior of one or both parties to the contract, e.g. an insured firm will take fewer fire precautions.

Moral Hazard

The risk that a party to a transaction or activity is not acting in good faith, or that one party has perverse incentives to act in a manner detrimental to the counter party. Moral hazards may exist for almost anything. For example, a plan for a government to bail out delinquent mortgages has the moral hazard that it will encourage mortgage holders to refrain from making their home payment. Likewise, deregulation has the moral hazard that companies will use it as incentive for short-term, unsustainable profits, rather than proper economic growth.

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Asymmetric Information Hazard Naked Swap Trailer Fee Trailing Commission			According to the Health Affairs study, "by insulating people from the costs of obesity-related medical care expenditures, insurance coverage creates moral hazard in behaviors related to body weight. Weighty arguments: insuring our waistlines by Suderman, Peter / Reason Mr King said the "massive support" to the global banking sector was "necessary to avert economic disaster" but warned it had created "possibly the biggest moral hazard in history". Governor hits out at banks by Independent Television News Limited (ITN) He said the the massive support to the global banking sector was necessary to avert economic disaster worldwide but warned it had created possibly the biggest moral hazard in histor y. King goes on warpath over banks by Birmingham Mail (England)			Monopsonio Monopsony Monte Carlo Simulation Montenegrin Perper Montenegrin Perun Month Order month-to-month tenancy Monthly Debt Service Monthly Housing Expense Monthly Income Preferred Securities Monthly Income Preferred Security Monthly Investment Plan Monthly Payment Monthly Total Expense Monthly-Income Debt Securities Montreal Exchange/Bourse de Montreal Montreal Stock Exchange monument Moody's Bond Survey Moody's Investment Grade Moody's Investors Service Moody's Investors Service, Inc. Moore's Law MOP Mora morosidad Moral Hazard Moral Obligation Bond Moral Obligation Debt Moral Suasion moral turpitude moratorium Morbidity Table Mordida More flexible exchange rate system more or less Morgan Stanley Capital International Morgan Stanley Capital International Emerging Markets Global Index Morgan Stanley Capital International Europe Index Morgan Stanley Capital International Europe, Australia, Far East Index Morgan Stanley Capital International Index Morgan Stanley Capital International Indexes Morgan Stanley Capital International Pacific Free Index Morgan Stanley Capital International World Index Morgan Stanley REIT Index Morning Drive Morningstar Rating System Morningstar Risk Rating Morningstar, Inc. Moroccan Dirham Morosidad Moroso atrasado			moral behavior Moral certainty Moral certainty Moral Code of the Builder of Communism Moral Code of the Communism Builder Moral codes Moral codes Moral codes Moral codes Moral compass Moral compass Moral compass Moral compass moral compulsion moral conduct moral consciousness Moral decline Moral decline Moral decline moral degeneracy Moral dilemma Moral education Moral education Moral Equivalent Of War Moral evidence moral excellence moral excellence moral faculty Moral fictionalism moral force Moral Hazard Moral hazards Moral hazards moral idiocy Moral insanity Moral insanity Moral insanity Moral insanity moral insensibility Moral Issues Sliced Thick Moral Judgement Test moral judgment Moral Law Moral Law Moral Law Moral Law Moral Law moral laws moral laws moral laws moral laws moral laws Moral liability Moral liability Moral liability Moral liability Moral liability Moral liberty moral majorities moral majorities Moral Majority

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