moral hazard

Noun

Meaning

(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)

Source: WordNet

Synonyms

good chance mental disturbance mental anguish moral injury mental injury moral risk morally endangered abusive use non pecuniary damage create moral hazard non-material damage emotional harm grossman-stiglitz paradox irresponsible behavior moral damage

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Antonyms

beatitude glee rapture pleasure animation heaven

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Hypernyms

risk hazard peril jeopardy endangerment

Examples

insurance companies are exposed to a moral hazard if the insured party is not honest Source: Internet

Conversely, this threat discourages governments from engaging in risky policy (see moral hazard ). Source: Internet

"Online reviews of restaurants can effectively identify cases of hygiene violations even after the restaurants have been inspected and certified, thereby identifying moral hazard," said Shawn Mankad, one of the study authors, from Cornell University. Source: Internet

If you want a much better explanation of moral hazard, read this article by Malcolm Gladwell. Source: Internet

Freeing up the market to ordinary market forces without quotas would reduce the moral hazard and imperfections like IPO frauds substantially and eliminate subsidies to punters. Source: Internet

Insurance scholars have typically used moral hazard to refer to the increased loss due to unintentional carelessness and insurance fraud to refer to increased risk due to intentional carelessness or indifference. Source: Internet

Close letter words and terms

moral futurism moral guidelines for doctors moral harm moral hazard issues moral hazards moral high ground