Question
Let's assume running is linked to the utility on the day you run and on the following day. Assume that running gives you U =
Let's assume running is linked to the utility on the day you run and on the following day. Assume that running gives you U = -6 on the day you run and U = 8 on the day after.
Your discounted utility is provided by the formula:
Discount(t) = ^t
1) If you have = 1, = 0.5, would you run today?
2) Do you want to run tomorrow?
3) Let's assume Sophistication: You are fully aware of your future self-control problems
Naivete: You are fully unaware of your future self-control problems.
If you are nave, will you run or not run tomorrow?
4) What what value should have for you to run today?
5) Assume = 0.5, and that if you run following day you getU = 8. What would U need to be on the day you run to run today?
6) Imagine you are partially nave. Your true = 0.5 but you think = 0.6 in the future). Do you think you will run tomorrow?
Source: Practice Problems
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