Topic 4 - Part 2: Intertemporal Choice

Question 1

B (Beta) measure ……… ….

Answer 1

present bias

Question 2

If Beta = 1, an individual who discounts the future quasi hyperbolically will behave exactly like an individual who discounts the future …………….

Answer 2

exponentially (DUM)

Question 3

If Beta < 1, outcomes beyond the present time are discounted …. than under exponential discounting.

Answer 3

more