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Persistent link: https://www.econbiz.de/10013166854
We develop a tractable framework to study the optimal design of stress scenarios. A principal wants to manage the unknown risk exposures of a set of agents. She asks the agents to report their losses under hypothetical scenarios before mandating actions to mitigate the exposures. We show how to...
Persistent link: https://www.econbiz.de/10013190995