Showing posts with label moral hazard. Show all posts
Showing posts with label moral hazard. Show all posts

Paul Bonneau: Why Renters Are Screwed

The forces are lined up against them.  Every now and then my wife and I get the itch to go into property rental. For example, we look at real estate listings on the Oregon Coast. A duplex would be nice, because we could take one unit for ourselves, and rent the other out. The renter could help watch our place while we were not around, and we  ... MORE

Thomas Sowell: Moral Hazard

Incentives matter.    One of the things that makes it tough to figure out how much has to be charged for insurance is that people behave differently when they are insured from the way they behave when they are not insured. In other words, if one person out of 10,000 has his car set on fire, and it costs an average of $10,000 to restore the car to its  ... MORE