You Are Given a Transition Matrix P

question 19

Essay

You are given a transition matrix P. Find the steady-state distribution vector.
​ $$P = \left[ \begin{array} { c c c } \frac { 2 } { 3 } & \frac { 1 } { 3 } & 0 \\\frac { 2 } { 3 } & \frac { 1 } { 3 } & 0 \\\frac { 2 } { 3 } & 0 & \frac { 1 } { 3 }\end{array} \right]$$

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Definitions:

Product Variety

The range of different goods or services offered by a company or available in a market.

Competitive Price-Searcher

A market participant who sets their prices based on competition and market conditions, often adjusting to attract consumers while remaining profitable.

Demand Conditions

The factors that affect consumers' desire and ability to purchase a product, influencing its market demand.

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry, which can include high startup costs, regulatory requirements, and access to distribution channels.