moral hazard
/ˌmɒrəl ˈhæzərd/
increased risk-taking by someone protected from consequences
moral hazard in a sentence
“Bailout expectations create moral hazard in banking.”
Origin of moral hazard
From moral + hazard (Arabic az-zahr the dice)
Related Words
adverse selection
the tendency for higher-risk individuals to seek insurance
credible threat
a threat that is believable because carrying it out is rational
brinkmanship
pushing a dangerous situation to the edge to force concessions
Schelling point
a solution people converge on without communication
tit for tat
a strategy of cooperating first, then mirroring opponent's previous move
first-mover advantage
the benefit gained by being the initial actor in a market or game