And even if you have one, the further that real-life market is away from the abstract free market, the less prices converge to cost + usual profit.
True.
I suspect that there is no market for unique, poorly-estimable risks.
That’s probably true for most such risks, but it’s worth noting that there are markets for some forms of oddball events. One example is prize indemnity insurance (contest insurance).
True.
That’s probably true for most such risks, but it’s worth noting that there are markets for some forms of oddball events. One example is prize indemnity insurance (contest insurance).