Order the answer to: In period 1, Mr. Consistency and Mr. Hyperbola are each

Assignment Help business-economics Order the answer to: In period 1, Mr. Consistency and Mr. Hyperbola are each

business-economics

Order the answer to: In period 1, Mr. Consistency and Mr. Hyperbola are each

Question According to this table, Mr. Consistency’s weight on future utility falls by half each period. Mr. Hyperbola’s weights are related to Mr. Consistency’s; the difference is that Mr. Hyperbola’s are reduced a further 30% for periods after the current one. a. Would Mr. Consistency plan to exercise in period 1? Would he follow through on this plan in period 2? b. Show that Mr. Hyperbola would not follow through on his exercise plan. c. Suppose Mr. Hyperbola could sign a contract in period 1 that forced him to give up an amount of money valued at x utile in period 2 if he does not stick with his exercise plan. How high would x have to be to him commit to hisplan?
Subject business-economics
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