Problem:
Suppose that in Problem 8 a new toothpaste brand enters the market such that the following transition probabilities exist
To
From Special B MDA T-white
Special B 0.80 0.10 0.10
MDA 0.05 0.75 0.20
T-white 0.40 0.30 0.30
What are the new long-run market shares? Which brand will suffer most from the introduction of the new brand of toothpaste?