Mathematics for Economists

(Greg DeLong) #1

InÖnite cake eating problem


As it holds for anyw

B = 1 +βB, )B=

1


1 β.

π(w) = c(w)=

w
1 + 1 ββ

=


w( 1 β)
1 β+β=w(^1 β).

For
A=ln( 1 +Bβ)+βA+βBln

βB
1 +Bβ
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