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Clear solutions please Problem 1 Individual S will be writing her Behavioral Economics exam in March. She can choose between two activities: attending the online

Clear solutions please

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Problem 1 Individual S will be writing her Behavioral Economics exam in March. She can choose between two activities: attending the online classes (C) and watching movies on her favorite streaming portal (M). In January and February, she can either fully focus on studying or watching movies. Depending on her behavior in January and February, individual S will be more or less successful in the exam. There are four possible utility streams which are summarized in the table below: January February March Attend classes (C) 9 utils 9 utils 42 utils Attend classes (C) Attend classes (C) - 9 utils 18 utils 21 utils Watch movies (M) Watch movies (M) - 18 utils 9 utils 21 utils Attend classes (C) Watch movies (M) 18 utils 18 utils O utils Watch movies (M) Assume that individual S discounts the future quasi-hyperbolically (B-8-model) with B = 1/3 and 8 = 1. a) From the perspective of January, calculate the utility for all possible utility streams. Which utility stream will individual S choose? (4 points) b) Suppose that individual S chose to watch movies in January. From the perspective of February, calculate the utility for the two utility streams C and M. Which utility stream will she choose? (2 points) c) Discuss differences and similarities of your results from problems b) and c). (4 points) d) In problem set 4, we covered the paper "Procrastination, Deadlines, and Performance: Self-Control by Precommitment", written by Dan Ariely and Klaus Wertenbroch (published 2002, Psychological Science 13(3), 219-224). Outline the paper's research question, describe the main aspects of the experimental design and the main results. Discuss how your results from problem c) relate to the paper's findings. (10 points)

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