asituationin whichpeopleororganizationsdo notsufferfrom theresultsoftheirbaddecisions, so mayincreasetherisksthey take:The Bank ofEnglandarguedthatinterventionwouldamountto "moralhazard".(Definition ofmoral hazardfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofmoral hazard
moral hazardThe belief that they would not be allowed to fail created amoralhazard, which allegedly contributed to the late-2000s recession.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Residual claimancy is generally required in order for there to bemoralhazard, which is a problem typical of information asymmetry.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Critics charge that strict liability creates risk ofmoralhazard.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Critics question whether problems with adverse selection,moralhazard, information asymmetries, demand inducement, and practice variations can be addressed by private markets.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The overuse of medical benefits is known asmoralhazardindividuals who are insured are then more inclined to consume health care.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.An excess is typically used to discouragemoralhazardand to remove small claims, which are disproportionately expensive to handle.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Moralhazardand conflict of interest may arise.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This again increases the problems ofmoralhazardand adverse selection and therefore will drive the amount of funds available through lending down.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This increases the risk ofmoralhazardand adverse selection problems for firms with a lower net worth.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.In effect, the mortgage originators were left with nothing which was at risk, giving rise tomoralhazard in which behavior and consequence were separated.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/moral-hazard##
