RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (13)

π t = ( 1 − θ ) ( 1 − β θ ) ν t + ( 1 − θ ) ( 1 − β θ ) θ ( 1 − ρ β ) − 1 ∑ s = 1 ∞ ρ s ν t − s . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqiWda3aaS baaSqaaiaadshaaeqaaOGaeyypa0ZaaeWaaeaacaaIXaaccaGae8Ne I0IaeqiUdehacaGLOaGaayzkaaWaaeWaaeaacaaIXaGae8NeI0ccci Gae4NSdiMaeqiUdehacaGLOaGaayzkaaGaeqyVd42aaSbaaSqaaiaa dshaaeqaaOGaey4kaSYaaSaaaeaadaqadaqaaiaaigdacqWFsislcq aH4oqCaiaawIcacaGLPaaadaqadaqaaiaaigdacqWFsislcqaHYoGy cqaH4oqCaiaawIcacaGLPaaaaeaacqaH4oqCaaWaaeWaaeaacaaIXa Gae8NeI0IaeqyWdiNaeqOSdigacaGLOaGaayzkaaWaaWbaaSqabeaa cqWFsislcaaIXaaaaOWaaabCaeaacqaHbpGCdaahaaWcbeqaaiaado haaaGccqaH9oGBdaWgaaWcbaGaamiDaiab=jHiTiaadohaaeqaaaqa aiaadohacqGH9aqpcaaIXaaabaGaeyOhIukaniabggHiLdGccaGGUa aaaa@6D73@