Problem 1 It is two weeks until the exam and you plan how to allocate your time in these two weeks. You can choose among two activities, learning (L) and cleaning your apartment (C). In each week, you can either clean or learn. There are three possible utility streams which are summarized in the table below: Week 1 Week 2 Holida s Learn (L) Learn (L) EI!_ 27 utils Learn (LlClean (C) m 15 utils Clean (C) Clean (C) 6 utils 6 utils 9 utils Assume that you discount the future quasi-hyperbolically (-a-model) with [3' : 1/3 and 6 = 1. a) Describe the economic meaning of the parameters 3 and 6 in the quasi-hyperbolic discounting model (4 points). b) Calculate the utility from the perspective of week 1 for all possible utility streams. Which utility stream will you choose? (3 points) c) Suppose that you chose to learn in week 1. Calculate the utility from the perspective of week 2 for the two utility streams L and C. Which utility stream will you choose? (3 points) d) Compare your results from problems b) and c) and discuss differences and similarities. (4 points) e) Discuss how your results relate to the paper \"Procrastination, Deadlines, and Performance: Self-Control by Precommitment\