What Is Moral Hazard

question 74

Essay

What is moral hazard?

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Definitions:

Social

Relating to society or its organization; pertaining to activities involving interaction with other people.

Valence

The value to the individual of various work outcomes.

Equity Theory

A theory of motivation that suggests individuals assess their job satisfaction based on the ratio of inputs to outcomes and compare it to the perceived ratio of others.

Expectancy Theory

Argues that work motivation is determined by individual beliefs regarding effort–performance relationships and work outcomes.