This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It … of the discount factor above which perfect risk sharing is self-enforcing. When agents face no aggregate risk, there is … of idiosyncratic and aggregate risk. In the case of exponential (isoelastic) utility, cooperation depends positively on …

This paper defines a measure of bargaining uncertainty that quantifies Roth's concept of strategic risk. It shows how … this measure can be used for checking reliability of the Shapley value in cost allocation problems and in the theory of …