Question: This exercise refers to Example 9.8. Suppose instead that you can only watch one of the four movies. Will you watch a the mediocre, b

This exercise refers to Example 9.8. Suppose instead that you can only watch one of the four movies. Will you watch a the mediocre, b the good, c the great, or d the fantastic movie?

(a) Show that an exponential discounter will watch d the fantastic movie.

(b) Show that a naive hyperbolic discounter will watch c the great movie.

(c) Show that a sophisticated hyperbolic discounter will watch a the mediocre movie.

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