Monday, November 10, 2008
Moral hazard and me
On Mondays I give my class a handout with problems that we will also use on Wednesdays and Fridays. Because some students miss on Monday and others forget their handouts, I come prepared on Wednesdays and Fridays with extras. Last week when we were discussing moral hazard, I realized that my handout policy was an example of a situation that created moral hazard.