chapter  XI
16 Pages

Economic Efficiency in Conditions of Environmental Uncertainty

We have seen in the previous chapter that one can obtain the same results through (1) a comprehensive set of contingency markets, (2) a comprehensive set of conditional forward markets, and (3) an ideal form of indicative planning which led to perfect foresight of all the market conditions (including rates of interest and of insurance premiums) which would rule along each environmental path. All three institutional arrangements would lead to the same results.