Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as

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The term "moral hazard" refers to the risk that one party may engage in risky behavior or take advantage of the other party after a transaction has been completed, because they know that they will not bear the full consequences of their actions. This can occur in situations such as insurance contracts, where individuals may take more risks because they are protected by the insurance company. It is a common problem in market transactions, and can lead to economic inefficiency and market failure.

Economists Refer to the Actions People Take After They Have