Showing 1 - 4 of 4
Persistent link: https://www.econbiz.de/10003747395
Persistent link: https://www.econbiz.de/10011734988
Our “Restated diversification theorem” (Skogh and Wu, 2005) says that risk-averse agents may pool risks efficiently without assignment of subjective probabilities to outcomes, also at genuine uncertainty. It suffices that the agents presume that they face equal risks. Here, the theorem is...
Persistent link: https://www.econbiz.de/10005809701
Decision theory assumes that agents making choices assign subjective probabilities to outcomes, also at choices where information on probabilities is obviously absent. Yet, Skogh and Wu (2005) show that risk averse agents may gain by risk sharing also at unknown (and unassigned) probabilities of...
Persistent link: https://www.econbiz.de/10005190614