Moral hazard

Moral hazard is in Economics some non observable actions or behaviours that can lead to assymetric information between market participants. It has been first been analysied in the insurance industry. Many researchers have tried to defined it. Buchanan (1964) defines it as ""every deviation from correct human behavior that may pose a problem for an insurer".

Buchanan, J. (1964), "The Inconsistencies of the National Health Service", Institute of Economic Affairs (Occasional papers n°7), Londres.

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