RDP 2007-12: Dynamic Pricing and Imperfect Common Knowledge Equation (B1)

X t ≡ [ x t − 1 | t − 1 ( 0 : ∞ ) x t | t ( 0 : ∞ ) ] , X t = W X t − 1 + [ 0 N ] v t W ≡ [ M 0 I 0 ] , v t = [ ν t η t δ t ] ′ . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeqabiGaaa qaaiaacIfadaWgaaWcbaGaamiDaaqabaGccqGHHjIUdaWadaqaamaa DaaaleaaieqacaWFybWaa0baaWqaaiaadshaiiqacqGFsislcaaIXa WaaqqaaeaacaWG0bGae4NeI0IaaGymaaGaay5bSdaabaWaaeWaaeaa caaIWaGae4NoaOJaeyOhIukacaGLOaGaayzkaaaaaaWcbaGaa8hwam aaDaaameaacaWG0bWaaqqaaeaacaWG0baacaGLhWoaaeaadaqadaqa aiaaicdacqGF6aGocqGHEisPaiaawIcacaGLPaaaaaaaaaGccaGLBb GaayzxaaGaaiilaaqaaiaadIfadaWgaaWcbaGaamiDaaqabaGccqGH 9aqpcaWGxbGaamiwamaaBaaaleaacaWG0bGae4NeI0IaaGymaaqaba GccqGHRaWkdaWadaqaamaaDaaaleaacaaIWaaabaGaamOtaaaaaOGa ay5waiaaw2faaiaadAfadaWgaaWcbaGaamiDaaqabaaakeaacaWGxb GaeyyyIO7aamWaaeaafaqabeGacaaabaGaamytaaqaaiaaicdaaeaa caWGjbaabaGaaGimaaaaaiaawUfacaGLDbaacaGGSaaabaGaamOvam aaBaaaleaacaWG0baabeaakiabg2da9maadmaabaqbaeqabeWaaaqa aiabe27aUnaaBaaaleaacaWG0baabeaaaOqaaiabeE7aOnaaBaaale aacaWG0baabeaaaOqaaiabes7aKnaaBaaaleaacaWG0baabeaaaaaa kiaawUfacaGLDbaadaahaaWcbeqaaGGaaiab9jdiIcaakiaac6caaa aaaa@793D@