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Finance and Stochastics· 2026Q1

Risk sharing with lambda value-at-risk under heterogeneous beliefs

Peng Liu, Andreas Tsanakas, Yunran Wei

Short summary

This paper derives semi-explicit formulas for risk sharing using lambda value-at-risk (λVaR) under heterogeneous beliefs, showing how belief differences impact optimal allocations.

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Economics and EconometricsEconomics, Econometrics and Finance