Business, 15.10.2019 23:30 montgomerykarloxc24x

He effect of impatience on consumer choices aa aa suppose the superbowl is this week, and shen is in need of a television to watch the big game. as a college student, shen knows that he can either buy his flat-screen television at the local electronics store, or he can shop online for a better deal but have to wait three days for the television to arrive. the following problem uses the economic concept of rate of time preference to determine which decision is better for shen. throughout the question, assume that shen pays for the good the day he buys it, so his wealth is affected in the initial time period no matter where he buys the good. also, assume the shipping cost and cost to travel to the store are incorporated into their respective given prices. finally, assume the goods are identical, and there's no cost to gaining information about prices-in other words, he knows the best price online and in the store without having to search. suppose shen receives a utility of 43.00 utils once he actually receives his television. let b indicate shen's patience level; that is, ? represents the discount rate between consuming something today versus tomorrow. for each of the values for ? found in the following table, compute the present value of shen's utility from receiving the television when he purchases his television in the store (and receives it today) and when he purchases it online (and receives it three days from now). present value when bought where b 0.8 ? -0.4 store (received today) online (received in three days)

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He effect of impatience on consumer choices aa aa suppose the superbowl is this week, and shen is in...

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