Talk:Moral hazard

Economics High‑importance

	Business and economics portal This article is within the scope of WikiProject Economics, a collaborative effort to improve the coverage of Economics on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.EconomicsWikipedia:WikiProject EconomicsTemplate:WikiProject EconomicsEconomics articles
High	This article has been rated as High-importance on the project's importance scale.

Philosophy: Ethics High‑importance

This article is within the scope of WikiProject Philosophy, a collaborative effort to improve the coverage of content related to philosophy on Wikipedia. If you would like to support the project, please visit the project page, where you can get more details on how you can help, and where you can join the general discussion about philosophy content on Wikipedia.PhilosophyWikipedia:WikiProject PhilosophyTemplate:WikiProject PhilosophyPhilosophy articles

High

This article has been rated as High-importance on the project's importance scale.

Associated task forces:
/
	Ethics

Finance & Investment Mid‑importance

	This article is within the scope of WikiProject Finance & Investment, a collaborative effort to improve the coverage of articles related to Finance and Investment on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.Finance & InvestmentWikipedia:WikiProject Finance & InvestmentTemplate:WikiProject Finance & InvestmentFinance & Investment articles
Mid	This article has been rated as Mid-importance on the project's importance scale.

Archives

1

This page has archives. Sections older than 365 days may be automatically archived by when more than 5 sections are present.

Wiki Education Foundation-supported course assignment

This article was the subject of a Wiki Education Foundation-supported course assignment, between 21 January 2020 and 30 April 2020. Further details are available on the course page. Student editor(s): Aely-Aronoff.

Above undated message substituted from Template:Dashboard.wikiedu.org assignment by PrimeBOT (talk) 04:27, 17 January 2022 (UTC)[reply]

Arson

"Many, perhaps most, police investigations of arson are the result of leads from suspicious insurance adjusters." I'm curious - where was this taken from? I'm not doubting its validity, just pondering upon the origins of its source.

I do not understand. Please give an example of a moral hazard.

Re: "It could be argued along the same lines that military spending increases the risk of war." I don't see this logic, and don't see how it fits under moral hazard. It would make sense if (a) the military was given money based on how many wars it fought, and (b) it was the military which decided whether to go to war. But (a) is not what is said-- it's not military spending that matters, but rather the tying of spending to war (in the same way that welfare is tied to number of children); to illustrate, even if military spending were presently zero, the incentive for war would exist. As for (b), it is just false. The military is given orders by the government, not vice versa. The exception would be the case of a military gov't, but in that case it pretty much can take as much money as it wants anyway. Perhaps one could argue that the military once deployed might try to provoke a greater conflict to get more money, though this really seems a stretch. I think this example needs to be struck or greatly retooled. -- VV 21:39, 19 Sep 2003 (UTC)

The purchase of weapons is a sunk cost that removes or reduces one disincentive to belligerent and provocative behaviour. We got all of these bombs and guns lying around. Do we just let 'em rust, or do we shoot something? OTOH, if they weren't already stockpiled, they would have to first be acquired before a belligerent plan could be carried out. So even if the army is not paid on a piecework basis, and even if it is civilian leaders who decide whether to go to war or not, the purchase of weapons still creates a moral hazard of warlike activity. -- Smerdis of Tlön 23:53, 19 Sep 2003 (UTC)

I agree that the military example is misleading. Military expenditure facilities perverse behaviour, but doesn't induce it. I think the inducement is the critical component of moral hazard. -- RyanCastle

^ That's so incorrect on a number of levels.

moral hazard vs morale hazard

In the insurance field, morale hazard can better be seperated from moral hazard, according to a textbook written by Rejda, George E., Principles of Risk Management and Insurance.

Moral hazard refers to dishonesty. For an example taken from the article, if someone is operating a failing business and decides that they'd rather have the cash from the insurance proceeds on the buildings, the term moral hazard is used.

morale hazard refers to carelessness due to presence of insurance protection. Example taken from the article would be automobile driver (with insurance protection) drive less cautiously.

External links modified

Hello fellow Wikipedians,

I have just modified 2 external links on Moral hazard. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:

When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.

This message was posted before February 2018. After February 2018, "External links modified" talk page sections are no longer generated or monitored by InternetArchiveBot. No special action is required regarding these talk page notices, other than regular verification using the archive tool instructions below. Editors have permission to delete these "External links modified" talk page sections if they want to de-clutter talk pages, but see the RfC before doing mass systematic removals. This message is updated dynamically through the template {{source check}} (last update: 5 June 2024).

If you have discovered URLs which were erroneously considered dead by the bot, you can report them with this tool.
If you found an error with any archives or the URLs themselves, you can fix them with this tool.

Cheers.—InternetArchiveBot (Report bug) 21:32, 6 December 2017 (UTC)[reply]

Very poor article

I came to this Wikipedia page to get a basic idea of the odd term "moral hazard" when I saw it mentioned in a magazine. The introductory paragraphs and the Example here are mostly useless. I eventually got somewhat of a handle on the concept after reviewing multiple pages suggested by a Google search. I'm not in a position to rewrite anything on the page but I hope someone who both understands the concept and can communicate it to the layperson will do so. — Preceding unsigned comment added by 2603:9000:AC08:A600:648D:D753:3EA1:A647 (talk) 01:35, 25 January 2020 (UTC)[reply]