Moral hazard exists when a party to a transaction has an incentive to take unusual business risks because they are unlikely to suffer potential consequences.

Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost.

When we look back at the beliefs and practices of our ancestors, we are often shocked at what they found morally acceptable: the public torture of criminals, the trading of slaves, and the subjugation ...

Should a soldier shoot the child who is pointing a gun at them and their colleague? Should a photographer film the aftermath of a terrorist attack or help the injured? Many situations present ...