Consider the canonical Becker and Murphy (1988) "rational addiction" model we discussed in class. a. Define "addiction" as the term is used in this framework.

b. Suppose people view $1 with certainty in one year as equivalent to b dollars today, 0 b 1, where b varies across people. Would you expect people with high values of b to be more or less likely to acquire harmful addictions than people with low values of b? Explain.