Cake eating problem
We have a cake of sizew 1 .We want to eat it inT periods. Our utility for
the consumption plan(ct)Tt= 1 is
T
∑
t= 1
βt ^1 u(ct).
The constraints are
T
∑
t= 1
ct+wT+ 1 =w 1
wT+ 1 0 ,ct 0.
We have a cake of sizew 1 .We want to eat it inT periods. Our utility for
the consumption plan(ct)Tt= 1 is
T
t= 1
βt ^1 u(ct).
The constraints are
T
t= 1
ct+wT+ 1 =w 1
wT+ 1 0 ,ct 0.