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Imagine that the hazard rate of a cempany's bankruptcy decreases ever tune (e.g. because rms who survive one year tend to be more able to

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Imagine that the hazard rate of a cempany's bankruptcy decreases ever tune (e.g. because rms who survive one year tend to be more able to survive another year): the chances of bankruptcy drops to 2% in the second year. What would be the amounts in year 1 and 2 which would make you indifferent now? Could you model your preferences using a Quasi- Hyperbolic Discounting model (with parameters ,8 and 6)? What would be the values of these two parameters

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