Table 14-2 The Following Data Consists of a Matrix of Transition Probabilities

question 60

Multiple Choice

Table 14-2
The following data consists of a matrix of transition probabilities (P) of three competing retailers, the initial market share π(0) .Assume that each state represents a retailer (Retailer 1, Retailer 2, Retailer 3, respectively) and the transition probabilities represent changes from one month to the next.
P = π(0) = (0.3, 0.6, 0.1)
-Using the data given in Table 14-2, what is the equilibrium market share?

• A)(0.55, 0.33, 0.12)
• B)(0.44, 0.43, 0.12
• C)(0.55, 0.12, 0.33)
• D)(0.47, 0.40, 0.13)

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Definitions:

Zero-Sum Situation

A zero-sum situation is a scenario in economic theory or game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Distributive

Pertains to the allocation or distribution of resources among parties in a negotiation or decision-making context.

Interdependent Parties

Entities or individuals that are mutually reliant on each other, often for resources or outcomes.

Interlocking Goals

Goals in a negotiation or relationship that are interconnected, such that achieving one party's goals can support or enhance the achievement of the other's.