Econ Time and Mind

Homework Module 8 and 9

1) 30 pt Fill in the following time equivalent for mental attention and discount rate (per second). Hint: Use a= exp(-𝞺𝞺ta), make sure to use LN function (natural log)

Highlight which combinations are less than 5 “seconds” distant. Interpret these results.

Attention (a)

𝞺𝞺 = .001 𝞺𝞺 = .01 𝞺𝞺 = .1 𝞺𝞺 = 1 𝞺𝞺 = 10 𝞺𝞺 = 100

0 .1 .2 .3 .4 .5 .6 .7 .8 .9 .95 .975 .99 1

2) 50 pt If mindfulness is being aware of things as they are, savoring is focusing on the most desired aspects, and flow is expressing oneself into the world, discuss a) how the balance of the three is changed when one’s favorite restaurant shutsdown, b) how the balance of the three is changed when one becomes physically impaired.

3) 50 pt. Discuss how the specialization of labor between construction worker, foremen and architect affects their specialization of consciousness. In particular, what are the impacts on how they look at the world, consider the future, and relate to the rest of the socio-economic system.

4) 100 pt A person wants to maximize their enjoyment of savoring their favorite meal. Assume their enjoyment function is

E = Sm*(a*So)B

Where, S = Space to eat = Sm + So a = tastiness factor Sm = Space taken up by the morsel of food So = Space open around food. B = savoring factor (increases with training to savor food) t = time trained to savor food B(t) = 1 + .25*t (for every hour of training B goes up by .25)

a) 35 pt Letting a = 10, and S = 1, Fill in their enjoyment of eating for the following table. B = 1 1.25 1.5 1.75

2 2.25 2.5

2.75 3 3.25 3.5 3.75 4

Sm t = 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1 Optimal Morsel Size

b) 5pt If S= 1, what does Sm and So represent? c) 5pt The person has income to spend on food or gourmand training (learning to enjoy food). Qf is the

amount of food they buy, t is the hours of training. They have a budget of M for enjoying food. Each unit of food costs Pf, and each unit of training costs Pt . Write out their income constraint.

d) 10 pt Let their Utility from how much they eat, and how much they are trained, be U(X, t) = X*E(t), where E(t) is their enjoyment from eating given t, and X is the number of bites. Rewrite the utility function using Qf and t, instead of Sm and B.

e) 30 pt Using the results from the table in a, and assuming the person consumes the optimal morsel size for the associated training, construct the utility table with Qf between 1 and 20, and t between 0 and 10.

f) 15 pt Assuming M = 1000, Pf = 50 and Pt = 100, what is there optimal quantity of food, morsel size, number of bites, training, and savoring factor. What happens if the price of training doubles?

g) Bonus challenge: Show how this changes when the person already has some training, and is considering more training. Discuss how this changes if the training atrophies over time.