How does each affect the demand for health insurance
What is “moral hazard”? What is “adverse selection”? How does each affect the demand for health insurance? What approaches do insurance companies use to control for each?
What are the different cost-containment approaches used by managed care firms? How does
managed care solve the problems of moral hazard and demand inducement?
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Moral hazard can be defined as a situation in which a party is insulated from the consequences of its action and thus they tend to take risks. Economists explain moral hazard as a special case of information asymmetry, a situation in which one party in a transaction has more information than another……………………………..
APA
553 words
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