Cake eating problem
The value function isV 1 (w 1 ) = lnc 1 +βlnc 2 =ln1
1 +βw^1 +βlnβ
1 +βw^1 =
= ln^1
1 +β+lnw 1 +βlnw 1 +βln β
1 +β$
$ A 2 +B 2 lnw 1.
greg delong
(Greg DeLong)
#1
The value function isV 1 (w 1 ) = lnc 1 +βlnc 2 =ln1 +βw^1 +βlnβ
1 +βw^1 =
= ln^1
1 +β+lnw 1 +βlnw 1 +βln β
1 +β$ A 2 +B 2 lnw 1.