7 lines
462 B
Markdown
7 lines
462 B
Markdown
# Moral Hazard
|
||
A situation in [market](market.md) behaviour in which participants are encouraged to take overly risky positions because their exposure is based purely on upside and are isolated from downside of the positions failing.
|
||
|
||
Often cited as a factor leading to the 2008 subprime mortgage crisis.
|
||
|
||
## References
|
||
* Momtaz, Paul P. 2020. ‘Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings’. Journal of Business Venturing, 106001. |