Moral Hazard Behavior is a type of decision-making conduct in which an individual engages in riskier actions under conditions of asymmetric information or insulated consequences, distinguishing it from other risk behaviors by the presence of incentives that reduce personal accountability for negative outcomes.
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Collective Moral Hazard, Maturity Mismatch, and Systemic Bailouts
Emmanuel Farhi, Jean Tirole · American Economic Review · 2012 · 1.1K citations · Full text
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