A fixed point approach for computing actuarially fair Pareto optimal risk‑sharing rules

"#risksharing is one way to pool risks without the need for a #thirdparty. To ensure the attractiveness of such a system, the rule should be accepted and understood by all participants. A desirable risk‑sharing rule should fulfill #actuarial fairness and #pareto optimality while being easy to compute. This paper establishes a one‑to‑one correspondence between an actuarially fair #paretooptimal (AFPO) risk‑sharing rule and a fixed point of a specific function."