Consider the three competing grocery stores in town, T’San Grocery, 654 Grocery and Sunlight Grocery. Consider the transition probabilities below:   To To To From T'San 654 Sunlight T'San 0.65 0.15 0.2 654  0.15 0.80 0.05 Sunlight 0.10 0.15 0.75 a. Compute the steady-state probabilities for this three-state Markov process. b. What market share will each store obtain?

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter3: Matrices
Section3.7: Applications
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Consider the three competing grocery stores in town, T’San Grocery, 654 Grocery and Sunlight Grocery. Consider the transition probabilities below:

  To To To
From T'San 654 Sunlight
T'San 0.65 0.15 0.2
654  0.15 0.80 0.05
Sunlight 0.10 0.15 0.75

a. Compute the steady-state probabilities for this three-state Markov process.
b. What market share will each store obtain?

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