RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (1)

p t = θ p t 1 + ( 1 θ ) p t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamiCamaaBa aaleaacaWG0baabeaakiabg2da9iabeI7aXjaadchadaWgaaWcbaGa amiDaGGaaiab=jHiTiaaigdaaeqaaOGaey4kaSYaaeWaaeaacaaIXa Gae8NeI0IaeqiUdehacaGLOaGaayzkaaGaamiCamaaDaaaleaacaWG 0baabaGaey4fIOcaaaaa@4771@