Econ 100CH Presentation1

Econ 100CH Presentation1 - Example Click to edit Master...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style 10/22/10 Example
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10/22/10 Consider a society consisting of two consumers of energy, Alice and Bob. An energy authority is charged with choosing the type of energy to be used by Alice and Bob. The list of options – from which the authority must make a single selection – are gas, oil, nuclear power, and coal.Let us suppose that there are two
Background image of page 2
Click to edit Master subtitle style 10/22/10 Example That we can relate to
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10/22/10 The Adams Family Pugsley and Wednesday are choosing what university to go to
Background image of page 4
10/22/10 The alternatives
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10/22/10 Their preferences Wednesd ay She Prefers the school with the Best academic reputation Pugsley He Prefers the school with the hottest girls
Background image of page 6
10/22/10 The states (This is the tricky part) State 2 The individual puts more weight on the Future State 1 The individual puts more weight on the present Let us suppose that there are two possible states of the world. In state 1, the consumers place relatively little weight on the future, i.e., they have com- paratively high temporal discount rates. In state 2, by contrast, they attach a great deal of importance to the future, meaning that their rates of discount are correspondingly low.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10/22/10 The present Ranking (According to Pugsley and Wednesday) Girls reputation Academic reputation
Background image of page 8
10/22/10 The expected future
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/21/2010 for the course ECON 1530 taught by Professor Ohly during the Spring '10 term at Dartmouth.

Page1 / 20

Econ 100CH Presentation1 - Example Click to edit Master...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online