Question: Consider the following transition probability matrix: Without making calculations, can you say what would the market share of each of the firms, A, B and

Consider the following transition probability matrix:

ABC A B C 0.80 0.12 0.08 0.15 0.70 0.15 0 0

Without making calculations, can you say what would the market share of each of the firms, A, B and C be in equilibrium? Now, verify it by calculations. Here, C is an absorbing state. True?

ABC A B C 0.80 0.12 0.08 0.15 0.70 0.15 0 0 1

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