Peril: cause of a loss

Hazard: increases the chance of a loss

Moral Hazard: tendancy for an individual to take risks because the party taking the risk won't feel the cost of the loss

Morale Hazard: indifference of an insured person to a loss because of insurance

what leads to moral hazard or averse selection ? The answer is asymmetric information .

So if asymmetric information does not exist, there will be no question about them .

Agree ?????

Brothers and Sisters - 2006 Moral Hazard 2-15 is rated/received certificates of:

Netherlands:6

There are actions that a company or person can partake in that would be considered a moral hazard by society in general. This would be actions such as offering or entering in to a contract under ill intentions of not actually honoring the contract.

"Moral hazard" refers to the risk that someone may act recklessly because they are protected from the consequences of their actions, often due to insurance or guarantees. "Morale hazard" is a term used more in the context of employment, where employees may become less motivated or careful due to a lack of consequences for their actions. In essence, moral hazard relates to financial risks, while morale hazard pertains to work ethic and behavior.