RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (45)

D = ( γ + φ ) [ 0 1 × 2 d 0 1 × 2 0 1 × 2 d ⋮ ⋱ ⋮ 0 1 × 2 … … 0 1 × 2 ] + [ 1 1 × 2 0 0 1 × 2 1 1 × 2 0 ⋮ ⋱ ⋮ 0 1 × 2 ⋯ ⋯ 1 1 × 2 ] . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamiraiabg2 da9iaacIcaiiaacqWFZoWzcqGHRaWkcqaHgpGAcqGHPaqkdaWadaqa auaabeqaeqaaaaaabaacbeGaa4hmamaaBaaaleaacaaIXaGae831aq RaaGOmaaqabaaakeaacaGFKbaabaaabaaabaGaa4hmamaaBaaaleaa caaIXaGae831aqRaaGOmaaqabaaakeaacaGFWaWaaSbaaSqaaiaaig dacqWFxdaTcaaIYaaabeaaaOqaaiaa+rgaaeaaaeaacqWIUlstaeaa aeaacqWIXlYtaeaacqWIUlstaeaacaGFWaWaaSbaaSqaaiaaigdacq WFxdaTcaaIYaaabeaaaOqaaiablAcilbqaaiablAcilbqaaiaa+bda daWgaaWcbaGaaGymaiab=Dna0kaaikdaaeqaaaaaaOGaay5waiaaw2 faaiabgUcaRmaadmaabaqbaeqabqabaaaaaeaacaGFXaWaaSbaaSqa aiaaigdacqWFxdaTcaaIYaaabeaaaOqaaiaa+bdaaeaaaeaaaeaaca GFWaWaaSbaaSqaaiaaigdacqWFxdaTcaaIYaaabeaaaOqaaiaa+fda daWgaaWcbaGaaGymaiab=Dna0kaaikdaaeqaaaGcbaGaa4hmaaqaaa qaaiabl6UinbqaaaqaaiablgVipbqaaiabl6Uinbqaaiaa+bdadaWg aaWcbaGaaGymaiab=Dna0kaaikdaaeqaaaGcbaGaeS47IWeabaGaeS 47IWeabaGaa4xmamaaBaaaleaacaaIXaGae831aqRaaGOmaaqabaaa aaGccaGLBbGaayzxaaGaaiOlaaaa@8487@