Examlex
You have a tendency to finish your brother's sentences.This annoys him but it makes you happy.You are practicing what type of communication?
Moral Hazard
The tendency of individuals or institutions to take on more risk when they know that they will not have to bear the full consequences of their actions.
Adverse Selection
A situation where asymmetric information results in high-risk individuals being more likely to participate in agreements or contracts, to the detriment of one party.
Moral Hazard
The situation where one party is more likely to take risks because another party bears the consequences.
Incentives
Rewards or penalties that motivate individuals or entities to act in certain ways.
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