Mathematics for Economists

Cake eating problem

With backwards iteration for timet=T 2

βT^3 u^0 (ct)VT^0  1 (wtct) = βT^3 u^0 (ct)VT^0  1 (wT 1 )= 0

βT^3 u^0 (cT 2 ) = VT^0  1 (wT 1 ).

But how do we calculate

VT^0  1 (wT 1 )?