Slow-Developing Catastrophic Risks (SDCRs) refer to risks, the development of which, though hardly discernible at first or by non-experts, may lead to critical transitions (or regime shifts). As a result, SDCRs can have catastrophic consequences in terms of fatalities or economic losses. Because...

Complex risks differ from simple risks in that agents facing them only possess imperfect information about the underlying objective probabilities. This paper studies how complex risks are priced by and shared among heterogeneous investors in a Walrasian market. I apply decision theory under...