Suppose you are offered A 12 utiles on Friday or B 16 utiles

Suppose you are offered (A) 12 utiles on Friday or (B) 16 utiles on Saturday. Determine which pairs of parame- ters will lead to time inconsistent choices for each of the following sets of parameters.:

(a) = 1, = 7/8. (b) = 1, = 1/8.

To do this you can calculate the hyperbolic discounted values of each option on Thursday and Friday.