Insulation from the consequences of a risk increases the taking of it.
Deposit insurance and bailouts are the standing cases. The dilemma is that the insulation is usually there for good reason, so the hazard cannot be removed without giving up the protection.
In practice
- A comprehensive warranty produces customers who stop reading the maintenance schedule.
- A team indemnified against every deployment failure by an automatic rollback stops testing before deploying.
- Further reading
- Wikipedia
- Subject
- Economics & Incentives
- Essay
- The theories behind every argument about money