Cherry, Todd; Howe, E. Lance; Murphy, James J. - Department of Economics, College of Business and Public … - 2012
In rural economies with missing or incomplete markets, idiosyncratic risk is frequently pooled through informal … affected member. In this paper, we describe results of a laboratory experiment designed to test whether a simple sharing … institution can sustain risk pooling in a social dilemma with idiosyncratic risk. We test whether risk can be pooled without a …