Mathematics for Economists

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