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Moral hazard doesn't have to be rational, just a deliberate choice. Such as the choice to smoke, or over-eat. Yes, they can be addictive, but there are suppor
by Dylanlacey 16y ago
Moral hazard doesn't have to be rational, just a deliberate choice.
Such as the choice to smoke, or over-eat. Yes, they can be addictive, but there are supports and cures for both, and involve willpower and sacrifice, but they're there.
I say this as a fatarse who has lost 20Kg by eating less (The Horror!) and doesn't blame anyone except himself.
- caf 16y agoMoral hazard is a concept entirely based on rational economic actors. If the potential future cost of dying of lung cancer doesn't deter people from smoking, then the potential future cost of bankruptcy from paying for lung cancer treatment isn't going to, either. It's about the mispricing of future risk rather than moral hazard. If you brought the cost up-front, by giving them health insurance but charging additional risk premiums to smokers, then you would likely find more rational decision-making around smoking.