Two common economic issues for foraging groups are risk and storage.

(a) Assume a forager is risk averse and draw a graph showing how utility depends on food. Then describe a situation in which two foragers would both be better off if they always shared their food equally. Explain the economic logic in detail. What assumptions are you making about the food outputs of the two foragers? Why is this important?

(b) Assume a forager cares about food consumption today and food consumption tomorrow. She has some food wealth today, and must decide how much of it to save for tomorrow. For the case where the interest rate is zero, how does the forager decide what amount of food to consume in each period? Explain the economic logic in detail. How does your conclusion change when the interest rate is (i) positive; or (ii) negative? Why?