As a result of a recent survey of students at the university of south Wisconsin, it was determined that the university owned bookstore currently has 40% of the market. The other three bookstores, bill?s, college, and battles? each split the remaining initial market share. Given that the state probabilities are the same, what is the market share for the next period given the initial market shares? What impact do the initial market shares have on each store next period?

what is the impact on the steady state market shares?

Transcribed Image Text:

Battle's university Bill's College Battles's University Bill's College 0.6 0.2 0.1 0.1 0 0.7 0.2 0.1 0.1 0.1 0.8 0 0.05 0.05 0.1 0.8 Battle's university Bill's College Battles's University Bill's College 0.6 0.2 0.1 0.1 0 0.7 0.2 0.1 0.1 0.1 0.8 0 0.05 0.05 0.1 0.8

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The results are presented below As you can see from the ending probabilities the market shares cha... View the full answer