Suchergebnisse

Conventional theory explains moral hazard as a consequence of information asymmetries. The present paper proposes an alternative approach. We argue that information asymmetries are just one among several causes of moral hazard & that they entail negative consequences for third parties only accidentally. By contrast, moral hazard also results from government interventionism. & in this case negative consequences are systematic & do result even in the absence of information asymmetries. References. Adapted from the source document.