Hyperbolic Discounting — Why Your Future-Self Disagrees
Behavioral-economics lab in three rounds.
About this simulation
An MBA Week-Zero quantitative microeconomics bootcamp.
Across three 25-minute rounds anchored on Café del Valle (a 40-store specialty-coffee chain in Costaria), participants read own-price elasticity off real POS data, apply the Lerner condition to find the elasticity-optimal price, decompose the welfare cost of a sin tax (CS loss, PS loss, government revenue, deadweight-loss triangle, Harberger t² scaling), and solve a Cobb-Douglas Lagrangian for two-good consumer choice — recovering the equimarginal principle and the marginal utility of income.
Bridge module into the 1300 Duopoly Lab.
Who it is for
An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.
How a session runs
- The instructor creates a session from the Eureka dashboard and invites the participants.
- Participants play 3 rounds. In each one they submit their decisions and the simulation calculates the results.
- The simulation can be run in English, Español.
- The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.