Abstract
In Chapter 4 we consider the use of a sharing rule (i.e., a contract) to efficiently share a partnership’s aggregate uncertain outcome among its members. We now consider risk sharing and market prices in a competitive financial market in which investors share the economy’s risky aggregate outcome by means of trading in securities, with investors taking the market prices as given.
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Christensen, P.O., Feltham, G.A. (2003). Arbitrage and Risk Sharing in Single-Period Markets. In: Economics of Accounting. Springer Series in Accounting Scholarship, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1133-5_5
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DOI: https://doi.org/10.1007/978-1-4615-1133-5_5
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