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The water slide market has two competitors: To what extent can you get wet (JPVM) and Splash in a flash (EEUE). JPVM is a newcomer
The water slide market has two competitors: To what extent can you get wet (JPVM) and Splash in a flash (EEUE). JPVM is a newcomer and currently holds 20% of the market share, while EUE holds 80%. Analysts predict that each year, 15% of JPVM customers will switch to EUE, while 45% of EUE customers will switch to JPVM. 1) What is the migration (or stochastic or transition) matrix P and the state vector initial X0 for this problem? 2) Determine the market shares of JPVM and EUE after one year, according to the forecasts of the Analysts. 3) Suppose the migration rates between the two companies remain the same. What will be long-term market shares
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