RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (26)

w t ( j ) p t = ( γ + φ ) y t + ω t ( j ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaam4DamaaBa aaleaacaWG0baabeaakmaabmaabaGaamOAaaGaayjkaiaawMcaaGGa aiab=jHiTiaadchadaWgaaWcbaGaamiDaaqabaGccqGH9aqpdaqada qaaiab=n7aNjabgUcaRiabeA8aQbGaayjkaiaawMcaaiaadMhadaWg aaWcbaGaamiDaaqabaGccqGHRaWkcqaHjpWDdaWgaaWcbaGaamiDaa qabaGcdaqadaqaaiaadQgaaiaawIcacaGLPaaaaaa@4D00@