Pls have a look at this: http://imgur.com/FRfoP
This is a screenshot of my lecture notes, from economics. I know that the LHS refers to the utility the agent thinks she will get if she consumes tomorrow, but I don't know what the RHS is. Can anyone tell me what the RHS refers to?
This is in the context of beta-delta discounting, where c0+c1 is the cost of doing the task, and b is the benefit from doing the action in all periods following the task.