RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (48)

π t = μ f E t π t + 1 + κ m c t + μ b π t 1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqiWda3aaS baaSqaaiaadshaaeqaaOGaeyypa0JaeqiVd02aaSbaaSqaaiaadAga aeqaaOGaamyramaaBaaaleaacaWG0baabeaakiabec8aWnaaBaaale aacaWG0bGaey4kaSIaaGymaaqabaGccqGHRaWkcqaH6oWAcaWGTbGa am4yamaaBaaaleaacaWG0baabeaakiabgUcaRiabeY7aTnaaBaaale aacaWGIbaabeaakiabec8aWnaaBaaaleaacaWG0baccaGae8NeI0Ia aGymaaqabaaaaa@5120@