Suppose Tony is deciding on buying an expensive road bike. There are three periods: Period 0 Tony decides to buy or not to buy the bike. The cost of the bike is equal to P utility units. (u0(buy) = -P)
Period 1 If Tony has bought the bike, then he has to decide if he is going out for a ride. If he goes for a ride, then his effort generates a utility cost of E units of utility. (u1(ride) = -E)
Period 2 If Tony has bought a bike and has ridden on it, then a health benefit equivalent to B utility units accrues. (u2(ride) = B)

Required:
Suppose Tony is naive and absolutely patient in the long term (δ = 1) but has a severe present bias (β = 1/3 ). Assume again P = 2, E = 4 and B = 8. Is he in period 0 expecting to ride in period 1 if he buys the bike? Is he actually going to ride if he has bought a bike and arrives at period 1? Is he going to buy the bike?

Walmart’s scm system walmart is famous for its low prices, and you may have experienced its low prices first-hand. at least, you have probably seen its motto, “always low prices— always.” one of the biggest reasons walmart is able to sell at prices lower than almost everyone else is that it has a superefficient supply chain. its it-enabled supply chain management system is the envy of the industry because it drives excess time and unnecessary costs out of the supply chain. so, because walmart can buy low, it sells low. as a matter of fact, if your company wants to sell items to walmart for it to sell in its stores, you will have to do business with it electronically. if your company can’t do that, walmart won’t buy anything from you. log on to walmart’s web site (), search for supplier information, and find out what walmart’s requirements are for its suppliers to do business with it electronically. prepare a brief summary of its requirements for presentation in clas