Suppose That Individuals with State-Independent and Risk-Averse Tastes Insure Each

question 21

True/False

Suppose that individuals with state-independent and risk-averse tastes insure each other through state-contingent trades.The competitive equilibrium price will then result in actuarily fair insurance terms.

---

Definitions:

Poisson Distributed

Poisson distributed is a statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events happen with a known constant mean rate and independently of the time since the last event.

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.

Automated Car Wash

A facility using machinery and automated processes to clean vehicles without human handwashing.