$2.($Lehr #$5\mathrm{.}3)$ Doing it Once: Group Think. It is Wednesday afternoon and a group of students

are discussing when to meet to work on a group project that is due on the following Monday. It

will only take one meeting to complete the project. The only days that everyone is available to

work are Thursday, Friday, and Saturday. The costs are increasing every day since it is worse to

give up weekend time than weekday time for a project. In addition, the project will be of lower

quality if it is done on Friday, when everyone is exhausted and distracted. We can model this

situation as a case of immediate costs in the Doing it Once model with T $=3$ and the following

reward and cost schedules:

a$.$ What is the strategy if the students are time$-$consistent $(=1)?$ When does the group

meet?

b$.$ What is the strategy if the students are naifs $($with $=1/2)?$ When does the group meet?

c$.$ The strategy for the case in which the students are sophisticates depends on $$# $.$ Assume

that $=1/2.$ Find a value of $$# in $(10,18)$ such that the sophisticates meet on the same

day as the time$-$consistents and a value of $$# in $(10,18)$ such that the sophisticates meet

on the same day as the naifs.

d$.$ Think about how this problem may have been different for students before the availability

of cell phones. Explain how cell phones can be welfare$-$reducing due to the ease with

which they facilitate coordination and planning a time to meet