The Impact of Risk Sharing on Efficient Decision
AbstractA group of risk-averse members must choose among monetary risks and payoff-sharing rules. Departure from the status quo requires unanimous consent. Such groups drill for oil, bail out nations, and make hostile takeover bids. Assume agreement on probabilities. As is well known, if all members have identically shaped HARA utility functions, efficient group act-choices follow another such function independently of payoff sharing. We show that all other groups inevitably have complex efficient behavior, accepting gambles among individually unacceptable lotteries in almost every status quo position. We also develop proper risk aversion for groups, and treat disagreement on probabilities. Copyright 1989 by Kluwer Academic Publishers
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Springer in its journal Journal of Risk and Uncertainty.
Volume (Year): 2 (1989)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100299
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Elyès Jouini & Clotilde Napp & Diego Nocetti, 2013.
"Collective risk aversion,"
- David M. Cutler & Richard J. Zeckhauser, 1997.
"Reinsurance for Catastrophes and Cataclysms,"
NBER Working Papers
5913, National Bureau of Economic Research, Inc.
- Gordon Rausser & William Balson & Reid Stevens, 2010.
"Centralized clearing for over-the-counter derivatives,"
Journal of Financial Economic Policy,
Emerald Group Publishing, vol. 2(4), pages 346-359, December.
- Rausser, Gordon C. & Balson, William & Stevens, Reid, 2009. "Centralized clearing for over-the-counter derivatives," CUDARE Working Paper Series 1091, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Rausser, Gordon C. & Balson, William & Stevens, Reid, 2009. "Centralized Clearing for Over-the-Counter Derivatives," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt494976mk, Department of Agricultural & Resource Economics, UC Berkeley.
- Maurizio Mazzocco, 2004. "Saving, Risk Sharing, and Preferences for Risk," American Economic Review, American Economic Association, vol. 94(4), pages 1169-1182, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.