Consider O 'Donoghue and Rabin 's model of choosing when to complete a one time task Let 1, 0 5, and 1 For each of the following profiles, solve for the time consistent, nave, sophisticated, and partially nave optimal strategy for (i) an immediate cost activity and (ii) an immediate reward activity...

a Consider first the immediate reward problem Time consistentThis problem may be written as Thus the time consistent decisionmaker will choose t 1 Nave In the first period the naf will perceive the pr ...

Consider O'Donoghue and Rabin's model of choosing when to complete a one-time task. Let = 1,

Question:

Consider O'Donoghue and Rabin's model of choosing when to complete a one-time task. Let δ = 1, β = 0.5, and β = 1. For each of the following profiles, solve for the time-consistent, naïve, sophisticated, and partially naïve optimal strategy for (i) an immediate cost activity and (ii) an immediate reward activity. In each case, suppose that the task must be completed by the end of the fourth period.
a. v = (12, 11, 10, 9), c = (7,8,9,10)
b. v = (7,8,9,10), c = (12, 11, 10, 9)
c. v = (10, 9, 12, 11), c = (9,10,7,8)
d. v = (9, 10, 7, 8), c = (10, 9, 12, 11)
e. Describe how the above illustrate propositions 13.1 through 13.4.