Sharing ambiguous risks
(2014)
Journal Article
Chakravarty, S., & Kelsey, D. (2015). Sharing ambiguous risks. Journal of Mathematical Economics, 56, 1-8. https://doi.org/10.1016/j.jmateco.2014.11.001
We analyse risk-sharing when individuals perceive ambiguity about future events. The main departure from previous work is that di¤erent individuals perceive ambiguity di¤erently. We show that individuals fail to share risks for extreme events. This m... Read More about Sharing ambiguous risks.