RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (B7)
X
t
|
t
(
1
)
=
(
I
−
K
L
)
W
X
t
−
1
|
t
−
1
(
1
)
+
K
L
W
X
t
−
1
+
K
L
[
N
0
]
v
t
+
K
L
e
t
.
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