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risk taking

Aging Three (Nostalgia Week)

“We thought we were being mature when we were only being safe.” from A Sense of an Ending by Julian Barnes First published March 2012.

Avoiding Moral Hazard

Moral hazard occurs when someone insulated from risk behaves differently than they would behave if they were fully exposed to the risk. An example is people who live in coastal zones where there is a high probability of a hurricane. They get insurance subsidized by the government so it is relatively less expensive to live there. Another example is people who live in earthquake zones and don’t buy earthquake insurance because always in the past FEMA has stepped in and made almost everybody more than… Read More »Avoiding Moral Hazard