# Tag Info

You interview one employer per week, and your discount rate is $\delta = 1/(1+.07)$. Suppose $x$ is the lowest quality job you would accept: anything worse than $x$, and you reject and keep searching. Let $J$ be the value of searching. Then we have the functional equation: $$J = \max_{x} \int_{x}^{1}z dF(z) + \int_{0}^x \delta J dF(z)$$ The first term is ...
@1muflon1 is definitely right. But for the sake of debate: when your friend pays $30 for your dinner of two (and then says you need to pay him back at some point) -- he is essentially loaning you$15 at 0% interest. You would owe him 15 now if you had the cash, but if you wait 2 weeks...you'll still owe him \$15. I.e. zero interest. Trivial example, maybe. ...