Revisiting Teaching Moral Hazard: Additional Class-Room Experimental Results

Noel D. Campbell and Thomas W. De Berry

Information and Uncertainty

Article

The authors previously presented results of their attempt to make moral hazard more real to beginning economics students by inducing their own demonstration of it through their behavior regarding exams. Though earlier results provided no basis to support a hypothesis of moral hazard in the exam behavior experiment, the procedure's pedagogical usefulness was noted. This paper presents the results of the authors' attempt to correct their perceived experimental design flaws and induce moral hazard with a new sample of beginning economics students. These results are analyzed, and conclusions are described in this paper.