Optimum Allocation of Risk in a Market With Many Traders

  • Yaffa Caspi
Part of the International Economic Association Series book series (IEA)


In a market with ‘many’ traders who bear risks, there is the possibility of pooling their independent risks and in this way to eliminate traders’ risks. There is a benefit from trade, and the way this benefit is divided between the traders depends on the system of exchange.


Optimum Allocation Pareto Optimum Large Market Competitive Equilibrium Initial Endowment 
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    L. J. Savage, The Foundations of Statistics (New York: Wiley, 1954).Google Scholar

Copyright information

© International Economic Association 1974

Authors and Affiliations

  • Yaffa Caspi
    • 1
  1. 1.The Hebrew UniversityJerusalemIsrael

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