This paper analyzes dynamic equilibrium risk sharing contracts between profit-maximizing intermediaries and a large …, even though a risk allocation superior to autarky can be achieved. …

Traditionally volatility is viewed as a measure of variability, or risk, of an underlying asset. However recently …

. The spatial derivative price distribution involves a risk premium. We examine functional principal components of … temperature variation for this spatial risk premium. We employ a pricing model for temperature derivatives based on dynamics … modelled via a vectorial Ornstein-Uhlenbeck process with seasonal variation. We use an analytical expression for the risk …

Quantal Response Equilibrium presents a stochastic theory of games that unites probabilistic choice models developed in … psychology and statistics with the Nash equilibrium approach of classical game theory. Nash equilibrium assumes precise and … is not perfectly predictable. In contrast, QRE models choice behavior as probabilistic and extends classical game theory …