Consider the case of n people, each with incomes I, i = 1,2, ... n and suppose that they enter a risk sharing contract so that individual i's income is 1 a 1 + y with a = 1 for all j. Suppose the risk tolerance of all individuals are identically equal. Suppose the variances of I, are identical (Oii = Ojj = V > 0, i j) and the covariances are also identical (ij = Ost = cv > 0, i j;s t). We assume that ij