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Other Papers on :Risk and Return

P/F/502. Economic consequences of moral hazard: case study of insurance market

(2006, 1000 words)

The paper examines the issues of moral hazard that may be caused by asymmetric information during a transaction or by the relationship between the employer and the employee, and may result in a market failure. The study focuses on the effects of moral hazard on insurance companies reviewing their policies of hedging against moral hazard risks.
 
   
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