Suppose instead that the utility function is u (x) 5 x2. What would Table 8.4

(b) look like, and what would d be?

Table 8.4 Time-discounting problem (in dollars and utiles) t 5 0 t 5 1 a b $9 $1 $4 $25

(a) In dollar terms Discount rates t 5 0 t 5 1 a b 3 1 2 5

(b) In utility terms