This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It … of the discount factor above which perfect risk sharing is self-enforcing. When agents face no aggregate risk, there is … of idiosyncratic and aggregate risk. In the case of exponential (isoelastic) utility, cooperation depends positively on …

analyzes a game between economic agents facing uncertainty and maximizing discounted utility without enforceable contracts or …

often impossible to locate an actual threshold with certainty. If individuals are risk averse, the economic literature holds … that the presence of such uncertainty can have a positive impact by lowering incentives to over-consume. We point out that … representation of uncertainty is a discrete or multimodal distribution. Using a variant of the Nash demand game where the maximal …

-makers. Uncertainty about the threshold for sustainable use or number of resource users may exacerbate the overconsumption problem. We are … first to investigate the joint impact of threshold and group size uncertainty in this setting. Overall, we find that … threshold uncertainty increases the likelihood of the resource being destroyed and reduces earnings from it. Group size …

We study the effect of environmental risk on the extraction of a common resource. Using a dynamic and non … anticipation of such an event has an ambiguous effect on extraction and the tragedy of the commons. A risk of a reduction in the … renewability induces the agents to extract less today while a risk of a deterioration in the quality has the opposite effect …

We study the effect of environmental risk on the extraction of a common resource. Using a dynamic and non … anticipation of such an event has an ambiguous effect on extraction and the tragedy of the commons. A risk of a reduction in the … renewability induces the agents to extract less today while a risk of a deterioration in the quality has the opposite effect …

technological uncertainty favors taxes over cap and trade. Weitzman models a flow pollutant, but greenhouse gases are persistent …

We introduce a "smart" cap and trade system that eliminates the welfare costs of asymmetric information (“uncertainty …

. A key assumption is that mergers create uncertainty on productivity and informational asymmetry between firms. The paper …