Tagged: Moral Hazard

Information Asymmetry

Information asymmetry: The battle for data

One key element that affects how people behave in different situations is the information they have about the issue. But, generally speaking, people do not possess same levels of information. This difference in the amount of information between two parties is known as information asymmetry. In business transactions, this asymmetry...

Moral Hazard

Moral hazard was first used in the insurance industry, but can also be observed in many other situations. The term refers to the negative behavior of an individual or a group being insured. When an entity is insured, they may take greater risks compared to when they were not secured...