Billot, A.; Chateauneuf, A.; Gilboa, I.; Tallon, J.-M. - Centre de recherche de mathématiques et économie … - 1998
In an exchange economy with no aggregate uncertainty, and Bayesian agents, Pareto optimal allocations provide full insurance if and only if the agents have a common prior. It is hard to explain why there is relatively so little betting taking place. One is led to ask, when are full insurance...