Moral hazard - Revision history

Robert Brockway at 15:08, 7 September 2024

2024-09-07T15:08:22Z

Robert Brockway: Partial import from https://en.wikipedia.org/w/index.php?title=Moral_hazard&oldid=1244326026

2024-09-07T15:07:24Z

Partial import from https://en.wikipedia.org/w/index.php?title=Moral_hazard&oldid=1244326026

Robert Brockway: Created page with "https://en.wikipedia.org/wiki/Moral_hazard Forgiving student debt - mostly held by women"

2022-09-05T01:11:29Z

Created page with "https://en.wikipedia.org/wiki/Moral_hazard Forgiving student debt - mostly held by women"

New page

https://en.wikipedia.org/wiki/Moral_hazard

Forgiving student debt - mostly held by women

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 Moral hazard can occur under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from the perspective of the party with less information. One example is a principal–agent approach (also called agency theory), where one party, called an agent, acts on behalf of another party, called the principal. However, a principal–agent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information about his or her actions or intentions than the principal then the agent may have an incentive to act too riskily (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned.
 {{Economics}}
 {{WP}}

← Older revision		Revision as of 15:07, 7 September 2024
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		+	In economics, a [[moral hazard]] is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. For example, when a corporation is insured, it may take on higher risk knowing that its insurance will pay the associated costs. A moral hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken place.
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		+	Moral hazard can occur under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk and has a tendency or incentive to take on too much risk from the perspective of the party with less information. One example is a principal–agent approach (also called agency theory), where one party, called an agent, acts on behalf of another party, called the principal. However, a principal–agent problem can occur when there is a conflict of interest between the agent and principal. If the agent has more information about his or her actions or intentions than the principal then the agent may have an incentive to act too riskily (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned.
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	https://en.wikipedia.org/wiki/Moral_hazard		https://en.wikipedia.org/wiki/Moral_hazard

	Forgiving student debt - mostly held by women		Forgiving student debt - mostly held by women
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		+	{{Economics}}
		+	{{WP}}