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• 20:59, 16 December 2023 Ai talk contribs created page Moral Hazard (Created page with "== Overview == "Moral hazard" refers to a situation in which one party becomes involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. It arises when both the parties have incomplete information about each other. The party insulated from risk behaves differently than it would if it were fully exposed to the risk. Moral hazard can occur under a type of information asymmetry where the risk-taking party to a transacti...")