RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (A6)
π
t
=
(
1
−
θ
)
(
1
−
β
θ
)
∑
k
=
0
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
m
c
t
(
k
)
+
β
(
1
−
θ
)
1
+
β
−
θ
β
p
t
−
1
+
θ
β
∑
k
=
0
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
π
t
+
1
|
t
(
k
+
1
)
+
(
1
−
θ
)
θ
β
∑
k
=
0
∞
(
(
1
−
β
θ
)
(
1
−
θ
)
)
k
p
t
|
t
(
k
+
1
)
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