Question: Three retail stores are competing for the same market in your neighborhood. Pick n Pay has 40% of the market while Shoprite and Woolworths each
Three retail stores are competing for the same market in your neighborhood. Pick n Pay has 40% of the market while Shoprite and Woolworths each have 30% of the market. Pick n Pay loses 10% of its customers to Shoprite and 10% to Woolworths each month. Shoprite loses 5% of its customers to Pick n Pay and 10% to Woolworths each month. Woolworths loses 10% of its customers to Pick n Pay while 20% go to Shoprite. a) Set up the matrix transitional probability of this problem. b) What will the market shares be for the three businesses next month? c) Find the equilibrium condition of this market
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
