RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (25)

m c t ( j ) = ( γ + φ ) y t + λ t + ε t ( j ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyBaiaado gadaWgaaWcbaGaamiDaaqabaGcdaqadaqaaiaadQgaaiaawIcacaGL PaaacqGH9aqpdaqadaqaaGGaaiab=n7aNjabgUcaRiabeA8aQbGaay jkaiaawMcaaiaadMhadaWgaaWcbaGaamiDaaqabaGccqGHRaWkcqaH 7oaBdaWgaaWcbaGaamiDaaqabaGccqGHRaWkcqaH1oqzdaWgaaWcba GaamiDaaqabaGcdaqadaqaaiaadQgaaiaawIcacaGLPaaaaaa@4E73@