Tag Archives: caution

Do your initial results change, i.e., does having insurance give the person an incentive to drive without caution?

Topic: Module 3 Assignment: Moral Hazard and Uncertainty AI Moral Hazard and Uncertainty Solve the case of moral hazard and uncertainty. See table below. Driving carefully carelessly Prob. loss Prob. loss accident 0.25 $10.000 0.75 $10,000 no accident 0.75 0 0.25 0 Make cases when insurance is or is not included. Analyze your results In […]