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What is moral hazard problem?

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What is moral hazard problem?
posted Aug 14, 2017 by Ati Kumar

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1 Answer

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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. It arises when both the parties have incomplete information about each other.

answer Aug 16, 2017 by Deepak Jangid
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