Ann can finish a project either this week or next week. The delayed rewards are 10 in either case. (The project can be done only once or not at all).Next week is busy and the cost of finishing the project are lower this week. The immediate costs are 4 this week and 6 next week. Ann has a quasi-hyperbolic utility withδ= 1 andβ <1. Imagine that Anndoes not finish the project this week. Then she should finish it next week (A) ifβ >0.6; (B) ifβ >0.4; (C) only ifβ= 1; (D) for anyβ.11. Suppose that β= 0.5 and Ann correctly anticipates her choice next week. Then she should finish the project (A) this week; (B) next week; (C) never; (D) not enough information.
Ann can finish a project either this week or next week. The delayed rewards are 10 in either case. (The project can be done only once or not at all).Next week is busy and the cost of finishing the project are lower this week. The immediate costs are 4 this week and 6 next week. Ann has a quasi-hyperbolic utility withδ= 1 andβ <1. Imagine that Anndoes not finish the project this week. Then she should finish it next week
(A) ifβ >0.6; (B) ifβ >0.4; (C) only ifβ= 1; (D) for anyβ.11.
Suppose that β= 0.5 and Ann correctly anticipates her choice next week. Then she should finish the project
(A) this week; (B) next week; (C) never; (D) not enough information.
can you help me with the bolded question? thank you!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
