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       Department of Systems Engineering and Engineering Management



                          The Chinese University of Hong Kong



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Date: Tuesday, May 20, 14:30 pm – 15:30 pm



Venue: ERB 513, The Chinese University of Hong Kong



Speaker: Professor Steven Kou, Boston University



Title: Anonymized Risk Sharing



Abstract: Anonymized risk sharing, which requires no information on

preferences, identities, private operations, and realized losses from

the individual agents, is especially relevant in the digital economy,

with applications such as P2P health care insurance, revenue sharing

of digital music and videos, and blockchain mining pools. Although

there is extensive literature on axiomatic approaches in decision

theory, so far there is no axiomatic theory for risk sharing. We

present such a theory in the context of anonymized risk sharing.

Pareto equilibrium and various notations of optimality are discussed.

Applications to the digital economy are presented.



Bio: Steven Kou is Allen and Kelli Questrom Professor in Finance at

Questrom School of Business, Boston University. He teaches courses on

FinTech, quantitative finance, and risk management. He was a co-area

editor for Operations Research. Currently, he is a co-editor for

Digital Finance and has served on editorial boards of many journals,

such as Operations Research, Management Science, Mathematics of

Operations Research, and Mathematical Finance. He is a fellow of the

Institute of Mathematical Statistics and won the Erlang Prize from

INFORMS in 2002. Some of his research results have been incorporated

into standard MBA textbooks.