Question: Find the steady-state vector for this market-that is, the long-range share of the market that each business can expect if the transition matrix holds. A

Find the steady-state vector for this market-that is, the long-range share of the market that each business can expect if the transition matrix holds.
A local business A has two competitors, B and C. No customer patronizes more than one of these businesses at the same time. Initially the probabilities that a customer patronizes A, B, or C are 0.2, 0.6, and 0.2, respectively. Suppose A initiates an advertising campaign to improve its business and finds the following transition matrix to describe the effect.
Last week's' This week's customers customers go to A B went to 0.7 A 0.2 0.1 0.4 0.4 0.2 0.4 0.4 0.2

Last week's' This week's customers customers go to A B went to 0.7 A 0.2 0.1 0.4 0.4 0.2 0.4 0.4 0.2

Step by Step Solution

3.30 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Steadystate vector is 07 02 01 03 047 04V3 0 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1386-M-C-L-A-D(3559).docx

120 KBs Word File

Students Have Also Explored These Related Calculus Questions!