Finance School of Management Complete markets for Risk a world in which there exist such a wide range of institutional mechanisms that people can pick and choose exactly those risks they wish to bear and those they want to shed Kenneth arrow. 1953 A hypothetical, ideal world Limiting case for efficient risk allocation Separation: production and risk bearing uesTc26 Finance School of Management Complete Markets for Risk ❖ A world in which there exist such a wide range of institutional mechanismsthat people can pick and choose exactly those risks they wish to bear and those they want to shed. Kenneth Arrow, 1953 – A hypothetical, ideal world – Limiting case for efficient risk allocation – Separation: production and risk bearing