... context of this model, theinformation they possess in period t - 1 is summarized by the so-called informationset, Qt-i.2t -1 {Pt -1 ,Pt -2 , Qt Qt- _2, ;ao, ai, bo, bi; Ut N(0, 0 -2 )} ... atbasis of all informinformation tht.set, Ot-1:Qt-1 = =- - (Pt-What does this rrincluding periodthe information sthe structure of tiused by agents). Iagents as is the stnrealization of ... of Pt:ao - boal (- 1911alal - (—) Et_iUt •(3.8)Consider the three terms on the right-hand side of (3.8) in turn. The first term isobvious: the conditional expectation of...