We study a dynamic and infinite-dimensional model with Knightian

uncertainty modeled by incomplete multiple prior preferences. In interior

efficient allocations, agents share a common risk-adjusted prior

and use the same subjective interest rate. Interior efficient allocations

and equilibria coincide with those of economies with subjective

expected utility and priors from the agents' multiple prior sets. We

show that the set of equilibria with inertia contains the equilibria

of the economy with variational preferences anchored at the initial

endowments. A case study in an economy without aggregate uncertainty

shows that risk is fully insured, while uncertainty can remain

fully uninsured. Pessimistic agents with Gilboa-Schmeidler's max-min

preferences would fully insure risk and uncertainty.