Question: Suppose that in Problem 8 a new toothpaste brand enters the market such that the following transition probabilities exist: What are the new long-run market

Suppose that in Problem 8 a new toothpaste brand enters the market such that the following transition probabilities exist:


Suppose that in Problem 8 a new toothpaste brand enters

What are the new long-run market shares? Which brand will suffer most from the introduction of the new brand oftoothpaste?

To MDA 0.10 0.75 0.30 From Special B MDA T-White Special B 0.80 0.05 0.40 T-White 0.10 0.20 0.30

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