Optimum Allocation of Risk in a Market With Many Traders
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.
KeywordsOptimum Allocation Pareto Optimum Large Market Competitive Equilibrium Initial Endowment
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