Whose Money is it? : An Economic Game on the Concept of Moral Hazard

The concept of moral hazard originates in the insurance industry, where it generally indicates that the presence of an insurance contract increases the likelihood of a claim and the size of a claim. The concept is an important one for all economics students to learn, especially students of health economics. The health care scenario game Whose Money Is It? was developed to help students better understand the concept and consequences of moral hazard. When played with two cohorts of students, the game results affirmed and enlightened the concept. Rather than select the optimal game solution relative to health care needs, 43 of 51 students accessed care more frequently and spent more money under the "Other Peoples' Money" scenario than under the "Out of Pocket" scenario