Consider the following situation: Jane wins a prize to have a dinner at the high-end Quay Sydney restaurant (price around $500 per person) with a friend of her choice. She has to choose between having the dinner next week or next month. She chooses next month. How would you explain her behaviour if she follows the discounting utility model. You can consider that she is choosing between two streams of payoffs: restaurant now and nothing later, or nothing now and restaurant later. We can represent these two streams as R = (Restaurant, 6) and R' = (25, Restaurant)