Isn't moral hazard just econospeak for a familiar phenomenon: socialized risk and privatized profit? -raghu.
On Nov 28, 2007 7:02 AM, Charles Brown <[EMAIL PROTECTED]> wrote: > Moral hazard > From Wikipedia, the free encyclopedia > > Moral hazard is the prospect that a party insulated from risk may > behave differently, for example, that an insured party's behaviour will > be more risky than it would without the insurance. Moral hazard arises > because an individual or institution does not bear the full consequences > of its actions, and therefore has a tendency to act less carefully than > it otherwise would, leaving another party to bear some responsibility > for the consequences of those actions. >
