In this short and accessible book, Amy Finkelstein#x97;winner of the 2012 John Bates Clark award#x97;tackles the tricky question of moral hazard, which is the tendency to take risks when the cost will be borne by others. Kenneth J. Arrow's seminal 1963 paper, #x93;Uncertainty an…
In this short and accessible book, Amy Finkelstein#x97;winner of the 2012 John Bates Clark award#x97;tackles the tricky question of moral hazard, which is the tendency to take risks when the cost will be borne by others. Kenneth J. Arrow's seminal 1963 paper, #x93;Uncertainty an…
Moral hazard--the tendency to change behavior when the cost of that behavior will be borne by others--is a particularly tricky question when considering health care. Kenneth J. Arrow's seminal 1963 paper on this topic (included in this volume) was one of the first to explore the…