Topics
Moral hazard
When the party with superior information alters his/her behaviour in such a way that benefits himself while imposing costs on those with inferior information. For example, moral hazard occurs when insured consumers are likely to take greater risks, knowing that a claim will be paid for by their cover. The consumer knows more about his/her intended actions than the producer (e.g. the insurer).
A short revision video on moral hazard can be found here
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Moral Hazard in Financial Markets
Topic Videos
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Moral hazard: Does vaccination increase risk-taking behaviour?
14th April 2021
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Information Failures in Markets
Topic Videos
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Information Failure: Four Short Revision Videos
Topic Videos
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Information Provision and Regulation (Online Lesson)
Online Lessons
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Economics of Commercial Bank Bailouts
Topic Videos
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A* Evaluation on Information Failures
Topic Videos
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Has capitalism become too gentle?
27th October 2017