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What does moral hazard mean?

Looking for the meaning or definition of the word moral hazard? Here's what it means.

Noun
  1. (economics) The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
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Examples
For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.
It also minimizes moral hazard, by centralizing negotiations over fee structures, and eliminating the collective action problem in enforcement.
The pattern of bailouts since 1995 has distorted the operation of financial markets by creating moral hazard.
Presented with the first authentic democratic challenge to their rules, they pettifogged on detail and fretted about moral hazard.
These theories highlight the problems of moral hazard in the principal-agent relation.
Five years ago, when the government bailed out Bear Stearns, we heard a lot about moral hazard.

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