Return to the Case of Jan,the Hyperbolic Discounter from the Previous

Return to the case of Jan,the hyperbolic discounter from the previous question. Suppose she can sign a contract that requires her to give up money equivalent to a loss of X utils if she does not undertake the action. Assume she does not behave consistent with her plans without this contract. How high would the contractual value of X have to be to prevent her inconsistency?

A) C - B/2.
B) B.
C) C.
D) B + C.

Correct Answer:

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