RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (A5)
p
t
=
(
1
−
θ
)
(
1
−
β
θ
)
∑
k
=
0
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
m
c
t
(
k
)
+
+
1
1
+
β
−
θ
β
p
t
−
1
+
(
1
−
θ
)
θ
β
∑
k
=
0
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
p
t
+
1
|
t
∗
(
k
+
1
)
.
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