Moral hazard

Definition

Moral hazard occurs when one party takes more risks because another party bears the cost of those risks. In the context of elections and political participation, it can refer to politicians making promises they might not keep, knowing that voters cannot easily hold them accountable once elected.

Related terms

Accountability: The obligation of political representatives to answer for their actions and decisions to the public or other designated authorities.

Principal: agent problem - A situation where an agent (e.g., a politician) makes decisions on behalf of a principal (e.g., voters), but has different interests and incentives, potentially leading to inefficiencies or conflicts.

Electoral Integrity:

The assurance that all stages of an election process are transparent, fair, and adhere to established rules and ethical standards, minimizing issues like moral hazard