. Adeliverydriverhastodeliverapackagebytheendoftheworkingweek. There are still four days remaining in the working week where they can deliver the package. The days are denoted by 1, 2, 3 and 4 in chronological order. The delivery driver discounts future pay-off using the (, ) discounting model. Assume that;

The delivery driver can be of either sophisticated, nave or time-consistent type.

= 1. Also assume that = 0.5 for nave & sophisticated types and = 1 for time-consistent types.

Costs of delivering the package are immediate (i.e. they are paid on the day of the delivery). Costs are 50, 70, 45, 85 in time periods 1, 2, 3 and 4, respectively.

Rewards are delayed and received one day after the delivery of the package (on day 5). The reward is 150.

Compute the delivery drivers optimal strategy and on which day the delivery driver will deliver the package in the following three cases:

a) The delivery driver is a time-consistent type. b) The delivery driver is a nave type. c) The delivery driver is a sophisticated type.

1. A delivery driver has to deliver a package by the end of the working week. There are still four days remaining in the working week where they can deliver the package. The days are denoted by 1, 2, 3 and 4 in chronologica order. The delivery driver discounts future pay-off using the (,) discounting model. Assume that; - The delivery driver can be of either sophisticated, nave or time-consistent type. - =1. Also assume that =0.5 for nave \& sophisticated types and =1 for time-consistent types. - Costs of delivering the package are immediate (i.e. they are paid on the day of the delivery). Costs are 50, 70, 45, 85 in time periods 1, 2, 3 and 4 , respectively. - Rewards are delayed and received one day after the delivery of the package (on day 5). The reward is 150. Compute the delivery driver's optimal strategy and on which day the delivery driver will deliver the package in the following three cases: a) The delivery driver is a time-consistent type. b) The delivery driver is a nave type. c) The delivery driver is a sophisticated type. 1. A delivery driver has to deliver a package by the end of the working week. There are still four days remaining in the working week where they can deliver the package. The days are denoted by 1, 2, 3 and 4 in chronologica order. The delivery driver discounts future pay-off using the (,) discounting model. Assume that; - The delivery driver can be of either sophisticated, nave or time-consistent type. - =1. Also assume that =0.5 for nave \& sophisticated types and =1 for time-consistent types. - Costs of delivering the package are immediate (i.e. they are paid on the day of the delivery). Costs are 50, 70, 45, 85 in time periods 1, 2, 3 and 4 , respectively. - Rewards are delayed and received one day after the delivery of the package (on day 5). The reward is 150. Compute the delivery driver's optimal strategy and on which day the delivery driver will deliver the package in the following three cases: a) The delivery driver is a time-consistent type. b) The delivery driver is a nave type. c) The delivery driver is a sophisticated type