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Three days left before an exam

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Ann has three days left before an exam. Each day she has a quasi-hyperbolic utility with δ = 1 and β = 0.5. Each day she can either work hard and get a delayed reward of 10, or have fun with an immediate reward of 7. She can work 1, 2, or 3 days and get 10, 20, or 30 in delayed rewards respectively. Without commitments, Ann will (A) work every day t = 1, 2, 3; (B) have fun every day t = 1, 2, 3; (C) have fun at t = 1, 2 and work at t = 3; (D) none of the above.

Reference no: EM131764772

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