Moral Hazard Is a Concept Best Described as
It refers to change in economic behavior when individuals are protected or insured against certain risks and losses whose costs are borne by another party. If for example your car is fully insured against any and all damage and there is no deductible then. Moral Hazard Economics Help Clients best interests this im-balance of knowledge can result in moral hazard. . Conversely morale hazard describes an unconscious change in a persons behavior when he is insured. The English language contains many idioms. Any time two parties come into an agreement with one another moral hazard can occur. In the context of health insurance the term moral hazard is widely used and slightly abused to capture the notion that insurance coverage by lowering the marginal cost of care to the individual often referred to as the out-of-pocket price of care may increase healthcare use Pauly 1968. In the context of health insurance the term moral hazar...