Say that c=2, Δ=1, vi=100, b(vi)=100, and the agent’s beliefs about pt1 are such that hi,t90=0.3 and hi,t110=0.7. Then, qi,t89=1 and qi,t109=0 such that πi|Hi,tpt1=0.3(10089)2=1.3. Agent i thus signals his willingness to observe the price. If given this opportunity, he will then buy the item if pt=89 and not buy it if pt=109.