RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (7)

m c t = ρ m c t 1 + ν t ν t N ( 0 , σ v 2 ) . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGTb Gaam4yamaaBaaaleaacaWG0baabeaakiabg2da9iabeg8aYjaad2ga caWGJbWaaSbaaSqaaiaadshaiiaacqWFsislcaaIXaaabeaakiabgU caRiabe27aUnaaBaaaleaacaWG0baabeaaaOqaaiabe27aUnaaBaaa leaacaWG0baabeaakiab=XJi+jaad6eadaqadaqaaiaaicdacaGGSa Gaeq4Wdm3aa0baaSqaaiaadAhaaeaacaaIYaaaaaGccaGLOaGaayzk aaGaaiOlaaaaaa@50BA@