RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (6)
π
t
=
(
1
−
θ
)
(
1
−
β
θ
)
∑
k
=
0
∞
(
1
−
θ
)
k
m
c
t
|
t
(
k
)
+
β
θ
∑
k
=
0
∞
(
1
−
θ
)
k
π
t
+
1
|
t
(
k
+
1
)
.
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