markets exhibit greater systemic risk, contagion, and distress volatility and are more prone to crises. The model suggests a … counterparties, average risk aversion, standard deviation of total exposure, and market structure …

second we use our theory to study a catastrophic risk. We propose a novel perspective to analyze systematic events …This paper gives a general formulation of systematic risk in a risk pool and studies its relation with principle of … insurance (POI), its extension principle of pooling (POP), and valuation. We will see that the systematic risk is secure if and …