The beta–delta function Suppose that you are facing a utility stream of 1 utile at t 5 0, 3 utiles at t 5 1, and 9 utiles at t 5 2. For each of the following parameter values, apply the beta–delta function to determine the discounted utility of the stream.

(a) b 5 1/3 and d 5 1.

(b) b 5 1 and d 5 2/3.

(c) b 5 1/3 and d 5 2/3.