RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (12)
π
t
=
(
1
−
θ
)
(
1
−
β
θ
)
m
c
t
+
(
1
−
θ
)
(
1
−
β
θ
)
θ
[
(
1
−
ρ
β
)
−
1
−
θ
]
m
c
t
|
t
(
1
)
.
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