RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (B6)
P
=
W
(
P
−
P
L
′
(
L
P
L
′
+
∑
ε
ε
)
−
1
L
P
)
W
′
+
∑
u
u
∑
ε
ε
=
[
σ
ε
2
0
0
0
0
0
0
0
σ
y
2
]
,
∑
u
u
=
N
[
σ
ν
2
0
0
0
σ
η
2
0
0
0
σ
y
2
]
N
′
.
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