RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge
Equation (5)
m
c
t
(
j
)
=
m
c
t
+
ε
t
(
j
)
ε
t
(
j
)
∼
Ν
(
0
,
σ
ε
2
)
∀
j
∈
(
0
,
1
)
.
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