RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (A3)
p
t
∗
(
j
)
=
(
1
−
β
θ
)
E
t
(
j
)
(
p
t
+
m
c
t
(
j
)
)
+
E
t
(
j
)
β
θ
p
t
+
1
∗
(
j
)
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamiCamaaDa aaleaacaWG0baabaGaey4fIOcaaOWaaeWaaeaacaWGQbaacaGLOaGa ayzkaaGaeyypa0ZaaeWaaeaacaaIXaaccaGae8NeI0IaeqOSdiMaeq iUdehacaGLOaGaayzkaaGaamyramaaBaaaleaacaWG0baabeaakmaa bmaabaGaamOAaaGaayjkaiaawMcaamaabmaabaGaamiCamaaBaaale aacaWG0baabeaakiabgUcaRiaad2gacaWGJbWaaSbaaSqaaiaadsha aeqaaOWaaeWaaeaacaWGQbaacaGLOaGaayzkaaaacaGLOaGaayzkaa Gaey4kaSIaamyramaaBaaaleaacaWG0baabeaakmaabmaabaGaamOA aaGaayjkaiaawMcaaiabek7aIjabeI7aXjaadchadaqhaaWcbaGaam iDaiabgUcaRiaaigdaaeaacqGHxiIkaaGcdaqadaqaaiaadQgaaiaa wIcacaGLPaaacaGGUaaaaa@6219@