Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard threatens this benefit. Studying the trade-off between screening and moral hazard, the paper characterizes optimal mechanisms. Popular all-or-nothing reward-crowdfunding schemes reflect thei...

This Panel Paper reviews recent evidence on moral hazard in the insurance industry. We discuss three types of moral hazard and detail how each is an asymmetric information problem. For each of the types, we summarize the empirical evidence and discuss the policy implications that follow from it. The evidence for ex ante moral hazard (i.e., insurance-induced increases in risk-taking) is rather w...

This paper investigates the equilibrium consequences of a contractual market with moral hazard where multiple principals compete each other to offer incentive contracts to agents who choose unobservable ex post actions. We show the following limit theorems: First, when the trade–off between incentive and risk sharing causes the moral hazard problem on the side of agents, the full insurance cont...

Lygus lineolaris (Palisot de Beauvois), Lygus hesperus (Knight) and Lygus rugulipennis (Poppius) can cause multiple-leaders to form on conifer seedlings. Injury due to Lygus bugs has increased during the last two decades to the point where these bugs are now considered the worst insect pest at many conifer nurseries. At several nurseries, Lygus bugs have injured 30% or more of the seedlings. Su...

TESTING FOR MORAL HAZARD IN REINSURANCE MARKETS Zhiqiang Yan ABSTRACT This paper tests for the existence of residual moral hazard in the three largest reinsurance markets in the United States for the period 1995-2000, and finds that (1) residual moral hazard does not exist in private passenger auto liability, product liability and overall reinsurance markets; (2) residual moral hazard might exi...

It is not every day that a scholar stoops to defend legislatures. Oh sure, lots of political theorists rush to the defense of democracy in the abstract, but they often have little to say about actual democratic practice. By contrast, empirical political scientists (and “positive political theorists”) have lavished attention on the institutions of democratic governance such as legislatures (part...

This paper explores issues associated with information sharing with emergency services entities through the lens of information security, structuration theory and agency theory. Information sharing can result in moral hazard that needs to be addressed to facilitate information transfers needed during emergency services. Developing a solution to the moral hazard issue associated with information...