moral hazard
nounDefinitions
The prospect that a party insulated from risk may behave differently from the way it…
The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
- And what about moral hazard—or concern that protecting the system, however errant the behaviour of certain bankers, will encourage more folly in the future?
- Pyne said the uncapped scheme introduced a “moral hazard” because it encouraged employers and workers to agree to overgenerous redundancy entitlements, knowing taxpayers would foot the bill if the company failed.
The neighborhood
Vish — recursive loop
No curated loop yet for moral hazard. Loops are being traced one word at a time while the ingestion pipeline matures.
sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA