Oak processionary the same manner. Oak is its preferred food source, but the moth also eats the leaves of hazel, hornbeam, sweet chestnut, birch and beech. The moths pose an increasing threat to humans as their range is extended. The backs of older caterpillars (3rd to 6th instars) are covered with up to 63,000 pointed defensive bristles, which contain an urticating toxin (e.g., the protein thaumetopoein). The setae break off readily, become airborne and can cause epidemic caterpillar dermatitis (lepidopterism), manifested as a papular rash, pruritus, conjunctivitis and, if inhaled, pharyngitis and respiratory distress, including asthma or even anaphylaxis; however, as of
Moral hazard it were fully exposed to the risk. According to contract theory, moral hazard results from a situation in which a "hidden action" occurs. Bengt Holmström said this: Moral hazard can be divided into two types when it involves asymmetric information (or lack of verifiability) of the outcome of a random event. An "ex-ante" moral hazard is a change in behavior prior to the outcome of the random event, whereas "ex-post" involves behavior after the outcome. For example, in the case of a health insurance company insuring an individual during a specific time-period, the final health of the individual can be