RDP 9307: Explaining Forward Discount Bias: Is it Anchoring? Equation (12)

α E t a Δ s t + 1 + ( 1 − α ) E t r Δ s t + 1 = α { f d t − β [ ( s t − p t ) − ( s ¯ t − p ¯ t ) ] } + ( 1 − α ) η f d t = f d t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqaHXo qycaWGfbWaa0baaSqaaiaadshaaeaacaWGHbaaaOGaeuiLdqKaam4C amaaBaaaleaacaWG0bGaey4kaSIaaGymaaqabaGccqGHRaWkdaqada qaaiaaigdacqGHsislcqaHXoqyaiaawIcacaGLPaaacaWGfbWaa0ba aSqaaiaadshaaeaacaWGYbaaaGGacOGae8hLdqKaam4CamaaBaaale aacaWG0bGaey4kaSIaaGymaaqabaaakeaacqGH9aqpcqaHXoqydaGa daqaaiaadAgacaWGKbWaaSbaaSqaaiaadshaaeqaaOGaeyOeI0Iaeq OSdi2aamWaaeaadaqadaqaaiaadohadaWgaaWcbaGaamiDaaqabaGc cqGHsislcaWGWbWaaSbaaSqaaiaadshaaeqaaaGccaGLOaGaayzkaa GaeyOeI0YaaeWaaeaaceWGZbGbaebadaWgaaWcbaGaamiDaaqabaGc cqGHsislceWGWbGbaebadaWgaaWcbaGaamiDaaqabaaakiaawIcaca GLPaaaaiaawUfacaGLDbaaaiaawUhacaGL9baacqGHRaWkdaqadaqa aiaaigdaiiaacqGFsislcqaHXoqyaiaawIcacaGLPaaacqaH3oaAca WGMbGaamizamaaBaaaleaacaWG0baabeaaaOqaaiabg2da9iaadAga caWGKbWaaSbaaSqaaiaadshaaeqaaaaaaa@76D4@