| Moral hazard: Moral hazard refers to the tendency of individuals or entities to take on higher risks or behave irresponsibly when they're insulated from the potential negative consequences of their actions. This behavior arises due to the presence of insurance, guarantees, or bailouts that mitigate the fallout of risky decisions, leading to increased recklessness or less cautious behavior. See also Insurances, Risks, Investments._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |
