An expository note on individual risk without aggregate uncertainty (Q759623)
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scientific article; zbMATH DE number 3882151
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| English | An expository note on individual risk without aggregate uncertainty |
scientific article; zbMATH DE number 3882151 |
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An expository note on individual risk without aggregate uncertainty (English)
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1985
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In economies where agents bear some risk, the analysis would often be facilitated by the assumption that the risks are i.i.d. and disappear in the aggregate. A formal appeal to the law of large numbers requires the consideration of a sequence of finite economies. In an economy with a continuum of agents there are countable families of sets for which it is impossible for a law of large numbers to be valid. With countably many agents and a finitely additive measure, independence is compatible with the law of large numbers.
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individual risk
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aggregation
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law of large numbers
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sequence of finite economies
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continuum of agents
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0.8501954674720764
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0.817385733127594
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0.7955231666564941
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0.7881861329078674
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0.7866112589836121
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