Anonymized risk sharing

Abstract

Anonymized risk sharing requires no information about agents' preferences, identities, private operations, or realized losses. It is especially relevant in the digital economy, with applications such as P2P health-care insurance, revenue sharing for digital music and videos, and blockchain mining pools. Although there is an extensive literature on axiomatic approaches in decision theory, there is, so far, no axiomatic theory of risk sharing. We develop such a theory in the context of anonymized risk sharing. Equilibrium and various notions of optimality are discussed. Applications to the digital economy are presented.