 ##  [Moral Hazard](/moral-hazard) 

  ##  [Moral Hazard](https://econbiz.quantumdictionary.io/moral-hazard-0) 

  

 [![Economics & Business Dictionary](/sites/default/files/styles/large/public/2026-01/Economics%20%26%20Business.png.webp?itok=vhJhN5nM)](/topic-specific-dictionaries/social-sciences/economics-business)

- Social Sciences -

**Economics &amp; Business Dictionary**

 







 

 

 

 



 

 

 

 

Definition

An economics and business concept defining a measure, method, or organizational practice used for analysis and decision-making. It specifies how information is generated or used to guide allocation of resources and evaluation of outcomes. It does not ensure correctness without clear assumptions, reliable inputs, and appropriate review of results.



 

 

 

 

 





 

 



 ##  [Moral Hazard](https://social.quantumdictionary.io/moral-hazard-1) 

  

 [![Social Sciences Dictionary](/sites/default/files/styles/large/public/2026-01/Social%20Sciences.png.webp?itok=FFG6NW1n)](/topic-specific-dictionaries/social-sciences)



**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A condition in which an actor alters their behavior after a transaction or contract because another party bears some or all of the downside risk, so that the actor’s ex‑post incentives to take on risky actions are distorted relative to the ex‑ante expectation.