Game theory in the popular press.


Game theory and economics in the news

August 11, 2006 Globe and Mail, Taxpayers will pay the tab when it's 'too big to fail'
New bond-rating system for Canadian banks takes into account the likelihood of government bailouts, recognizing moral hazard (by Harry Koza)
July 31, 2006 Times Herald-Record, The cost of the moral hazard: You are paying for it
Regular flooding of the Delaware River is due to moral hazard. Responsible parties, including energy companies, face no responsibility as the federal government provides relief. (by Graham L. Brown)
July 28, 2006 Investor's Business Daily, Let Employees Control Future Of Retirements
Adverse selection in the pension insurance market is overcome with mandating insurance coverage, but moral hazard persists. (by Jagadeesh Gokhale and Peter van Doren)
December 8, 2005 Slate, It's not your grandpa's moral hazard anymore
An economist worries about the moral hazard created by the medicare prescription drug benefit. (by Austan Goolsbee)
August 29, 2005 The New Yorker, The moral-hazard myth
Argues that politicians have overstated the moral hazard problem in medical insurance, as few people would overconsume medical services. (by Malcolm Gladwell)
December 12, 2004 New York Times, The designated hitter as moral hazard
Baseball pitchers deliberately target hitters more often in the American League, where the pitchers do not have to take a turn at bat (by Daniel H. Pink)
April 13, 2004 Bloomberg, China's spending fury points to `moral hazard'
Local governments overspend due to moral hazard and inappropriate incentives rewarding growth without punishing expenditure.
March 29, 2004 EurekAlert, Why AL batters get beaned more often
Moral hazard allows AL batters to get hit by pitches more often than NL batters since the designated hitter rule precludes a tit-for-tat response.
February 3, 2004 BBC News, One in 10 workers 'incompetent'
Employer surveys reveal that many employees are not proficient, partly due to training and partly due to moral hazard and poor incentive structures.
October 30, 2003 Courier-Journal, Motorcycle deaths rise after helmet-law repeal
Refutes the moral hazard argument that helmet laws make riders less safe by empowering them to take on more risks.
October 27, 2003 Salt lake Tribune, Use your head
Short letter to the editor notes that moral hazard leads to more head injuries for skiers wearing helmets than for those foregoing the safety gear.
October 9, 2003 The Economist, Fat Cats Feeding
Discusses trends in executive incentive pay in light of recent scandals.
July 31, 2003 Freezerbox, Who profits from erasing Iraq's debt?
A Pentagon advisor believes that financiers of "vicious dictatorships" should face a moral hazard but perhaps the hazard is for not supporting US efforts?
July 16, 2003 Kansas City Star, This deal had losers, not victims
A judge believes that investors should take responsibility for stock market losses. Allowing losers to sue brokerages would create a moral hazard.
April 24, 2003 Arizona Republic, Sad reality behind the American (Airlines) way
The subsidization of the airline industry creates a moral hazard as airlines do not face the risk of loss.
April 21, 2003 The Guardian, Writing off tyrants' debt is a principle that should be extended to even poorer nations
Does forgiving post-war Iraq its pre-war debts create a moral hazard for other countries?
April 14, 2003, Terrorism and the moral hazard
Argues that the insurance-industry requirement to offer terrorism insurance will lead to more terrorist attacks as moral hazard precludes care.
January 20, 2003 American Medical News, Managed care easing gatekeeper hassles
Discusses the role of capitation and other incentive pay packages in managed care.
January 9, 2003 Washington Post, Finding shelter with Uncle Sam
Companies increasingly use incentive pay to shift profit risks to employees.
November 26, 2002 United Press International, The bear's lair: Unnatural monopolies
The Federal Reserve's stimulus policies present a moral hazard.
October 23, 2002 Slate, Should we pay off the sniper?
Payoffs may encourage copy-cats, a moral hazard but may be worth considering if the threat is sufficiently credible
August 9, 2002 The Independent, IMF's $30bn bailout for Brazil sends lenders the wrong signal
International monetary fund bail-outs cause moral hazard, bad investments (by Philip Thornton)
July 30, 2002 Forbes, How to salvage stock options
How stock option bonuses can align incentives of shareholders and executives.
July 30, 2002 Miami Herald, Market decline reveals hazards
Stock options create a moral hazard, incentives for short-term stock price spikes.
July 29, 2002 InfoWorld, Incentive Systems announces name change, new EIM suite
Discusses the rising business of software for managing incentive pay of sales forces.
April 8, 2002 Roanoke Times, Ensuring discrimination
Considers the relationship between credit histories and moral hazard in the insurance industry. (by Reginald Shareef)
March 25, 2002, The Fed and Moral Hazard: have the nuts taken over the asylum?
Argues that the Federal Reserve's economy-bolstering actions create a moral hazard.
February 9, 2002 CNet, Partners today, rivals tomorrow
Notes the need to consider strategic moves by current partners, including post-contractual hold up and moral hazard.
2002 Bangkok Post, Four-year timeframe looks likely
Deposit insurance agency may introduce moral hazard by charging the same premiums from all institutions regardless of risk.
October 31, 2001 The, Moral hazard lights flare around bailouts
Government aid to the insurance industry presents a moral hazard problem
September 28, 2001, Flying pork barrels
The benefits of taking on risk are higher-than-average returns, but there are no risks if airlines are bailed out.
July 29, 2001 New York Times, A Bicycling Mystery: Head Injuries Piling Up
Increased use of bicycle helmets leads to moral hazard, more injuries.
June 1, 2001 CFO Magazine, Building a better carrot
Companies struggle with moral hazard and offer incentive pay to even lower-level employees.
May 2, 2001, Why are we getting so fat?
Is modern medicine lowering the health risks of obesity? and other incentive and moral hazard arguments.
July 24, 2000 Global Economic Forum, Global: Coming to Grips with Moral Hazard
Examines the inherent moral hazard created by bail-outs of international financial markets.
June 1, 2000, The 2000 compensation survey: Riding the bull
Stock options reward executives when prices rise but this does not mean incentives are aligned.
May 3, 1999 Forbes, The wild one
Understanding incentives may explain why helmet laws increase fatalities
October 5, 1998, The brightest and the brokest
Moral hazard in the Fed's bailout of Long Term Capital Management
October 1, 1998 Physician's News Digest, IPAs confront market challenges
Risk management and incentive pay in physician groups.
September 29, 1997 Wall Street Journal, Easel pickings: For this art collector, priceless paintings are get-out-of jail cards
Reducing sentences for art thieves in return for stolen art creates perverse incentives to steal more.