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

Δ s t + 1 = b j + ε t + 1 ε t + 1 ∼ i . i . d . N ( 0 , σ Δ s j 2 ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabeGaaa qaaGGaciab=r5aejaadohadaWgaaWcbaGaamiDaiabgUcaRiaaigda aeqaaOGaeyypa0JaamOyamaaBaaaleaacaWGQbaabeaakiabgUcaRi abew7aLnaaBaaaleaacaWG0bGaey4kaSIaaGymaaqabaaakeaacqaH 1oqzdaWgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaOGaeSipIOJaam yAaiaac6cacaWGPbGaaiOlaiaadsgacaGGUaGaamOtaaaadaqadaqa aiaadcdacaGGSaGaeq4Wdm3aa0baaSqaaiab=r5aejaadohadaWgaa adbaGaamOAaaqabaaaleaacaaIYaaaaaGccaGLOaGaayzkaaaaaa@5807@