Aaron, James, and Thomas live by an Argentina market in Miami Beach. Their daily purchases of fried empanadas, alfajores

1. Check and complete my answers for the multiple choice and T/F questions. Page 3 of the file.

2. Do this exercise:

Aaron, James, and Thomas live by an Argentina market in Miami Beach. Their daily purchases of fried empanadas, alfajores, and other unhealthy-but-mouthwatering treats are costly and have given them each of extra pounds. One day they all mention that they want to make better food choices and decide to start a healthy restricted diet immediately. Aaron’s discounting function is exponential. James thinks he has the same function as Aaron, but James actually has a hyperbolic discounting function. Thomas has a hyperbolic discounting function and is aware of that. Describe the most likely scenarios for Aaron, James, and Thomas in the weeks following their initial plan.

Hint:
Aaron:
James: Messes up.
Thomas: Demands commitment mechanism.

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