Moral hazard occurs when partners in an alliance possess high-quality resources and capabilities of significant value in an alliance but fail to make those resources and capabilities available to alliance partners.

Question

Quizplus · Accepted Answer

Moral hazard refers to the risk that one partner in an alliance may act opportunistically and fail to provide promised resources or effort, knowing that the other partner will still bear some of the costs of the alliance. This can occur when the partner possesses valuable resources but chooses not to share them, potentially harming the overall success of the alliance.

Moral Hazard Occurs When Partners in an Alliance Possess High-Quality