Suppose that an intertemporal decision maker has preferences over consumption paths (1,2) R) and assume that the utility from consumption path (1,72) is u(x) Bu(x2), for some number 0 3 1 and some strictly increasing function u R R (a) Does this preference relation satisfy time independence Provide an explanation (b) Does this preference relation satisfy present bias Provide an explanation

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Suppose that an intertemporal decision-maker has preferences over consumption paths {(1,2) R) and assume that the utility from consumption path (1,72) is u(x) +

Suppose that an intertemporal decision-maker has preferences over consumption paths {(1,2) R) and assume that the utility from consumption path (1,72) is u(x) + Bu(x2), for some number 0

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