Unveiling Moral Hazard: How Market Transactions Could Be Revolutionized
The article discusses the problem of moral hazard in market transactions, which arises when one party may act against the interests of another after a contract is signed. This can happen due to differing interests or information imbalances. The term "moral hazard" was first used in insurance literature and has since become important in understanding how contracts can be affected by the actions of agents. The study explores ways to mitigate or eliminate moral hazard in market transactions.