Moral hazard exists when a party to a transaction has an incentive to take unusual business risks because they are unlikely ...

Discover how adverse selection affects markets, particularly insurance and the used car industry, and learn about the ...

Florida’s home insurance market has long been a mess. With private property insurance getting scarcer and more expensive, some members of the legislature are pushing for an even greater role for the ...

The prospect of judicial review may cause legislators to adjust their behavior to anticipate the court’s response. This can serve as a source of moral hazard for legislators. Legislators can pursue ...

To date we have taken apart the firm and examined where institutions offer no advantage over bargaining by individuals, or relying on the price mechanism. We have seen two early explanations for ...

Senators Bill Hagerty and Angela Alsobrooks have introduced legislation that would raise the FDIC deposit insurance limit on noninterest-bearing transactions account balances from $250,000 to $10 ...