Lack of incentive to guard against risk where one is protected from its consequences, e.g. by insurance.
〔经济〕道德风险
Example sentencesExamples
The recent history of the credit system can be thought of as the evolution of increasingly successful methods of reducing the risk premium caused by hidden information and moral hazard.
He is creating moral hazard by making investors think that investment risks are minimized simply by skimming an independent stock research report.
For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.
Definition of moral hazard in US English:
moral hazard
nounˈmôrəl ˈhazərd
Economics
Lack of incentive to guard against risk where one is protected from its consequences, e.g. by insurance.
〔经济〕道德风险
Example sentencesExamples
He is creating moral hazard by making investors think that investment risks are minimized simply by skimming an independent stock research report.
For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.
The recent history of the credit system can be thought of as the evolution of increasingly successful methods of reducing the risk premium caused by hidden information and moral hazard.