RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (A8)
π
t
(
l
)
=
(
1
−
β
θ
)
(
1
−
θ
)
∑
k
=
l
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
m
c
t
(
k
)
+
β
θ
∑
k
=
l
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
π
t
+
1
|
t
(
k
+
1
)
+
θ
β
(
1
−
θ
)
[
∑
k
=
1
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
π
t
(
k
+
1
)
]
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