RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (B9)

x t = R x t 1 + [ ν t δ t ] , R = [ ρ 0 0 0 ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaacbeGaa8hEam aaBaaaleaacaWG0baabeaakiabg2da9iaadkfacaWF4bWaaSbaaSqa aiaadshaiiaacqGFsislcaaIXaaabeaakiabgUcaRmaadmaabaqbae qabeGaaaqaaiabe27aUnaaBaaaleaacaWG0baabeaaaOqaaiabes7a KnaaBaaaleaacaWG0baabeaaaaaakiaawUfacaGLDbaacqGFYaIOcq GFSaalcaWGsbGaeyypa0ZaamWaaeaafaqabeGacaaabaGaeqyWdiha baGaaGimaaqaaiaaicdaaeaacaaIWaaaaaGaay5waiaaw2faaaaa@5094@