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A decision maker is given a series of choices involving risk and time delays. You observe the following choice: (1000, 0.8;00) ~1001, where subscripts indicate years. (a) Derive the discount factor between periods 0 and 1 assuming discounted expected utility (DEU) with exponential discounting. (b) Suppose that we also observe (1000, 0.6;00) ~ 751. Is this decision maker risk-averse, risk-neutral, or risk-seeking? Explain your reasoning. (Hint: Use the discount factor you derived above.) (c) Now suppose that we observe (1001, 0.75;01) ~1083. Given your answers to (a) and (b), does this decision maker display constant discounting? A decision maker is given a series of choices involving risk and time delays. You observe the following choice: (1000, 0.8;00) ~1001, where subscripts indicate years. (a) Derive the discount factor between periods 0 and 1 assuming discounted expected utility (DEU) with exponential discounting. (b) Suppose that we also observe (1000, 0.6;00) ~ 751. Is this decision maker risk-averse, risk-neutral, or risk-seeking? Explain your reasoning. (Hint: Use the discount factor you derived above.) (c) Now suppose that we observe (1001, 0.75;01) ~1083. Given your answers to (a) and (b), does this decision maker display constant discounting

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