Question: A student has to do a problem set in exactly one of four periods: 0, 1, 2, or 3. The instantaneous utility cost of doing

A student has to do a problem set in exactly one

A student has to do a problem set in exactly one of four periods: 0, 1, 2, or 3. The instantaneous utility cost of doing the problem set in period t is (3/2). In each period, the student decides freely whether to do the problem set in that period, except that if she did not do the problem set before period 3, she has to do it then. 3 = . i=t+1 The student is a hyperbolic discounter with the following utility function: Un = ut + B si-tu; Where = 0.5 and 8 = 1. a. When does a sophisticated student do the problem set? Show your work and explain the intuition. b. When does a naive student do the problem set? Show your work and explain the intuition

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