Linear AlgebraHardMarkov Chains & Long-Run Behavior
Markov Chains & Long-Run Behavior · Hard problem
Two rival models predict how customers switch between Coffee Shop A and Shop B each month. Model 1: keeps a customer with probability (otherwise switches to ); keeps with probability . Model 2: keeps with probability ; keeps with probability . Under which model does Shop A have the higher long-run market share, and what is the positive difference between the two models' steady-state shares for ? Express your answer as a common fraction.