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Mathematics, 28.02.2020 23:28, leannaadrian
There are k players, with player i having value vi > 0, i = 1,...,k. In every period, two of the players play a game, while the other k − 2 wait in an ordered line. The loser of a game joins the end of the line, and the winner then plays a new game against the player who is first in line. Whenever i and j play, i wins with probability vi/(vi+vj)
(a) Define a Markov chain that is useful in analyzing this model.
(b) How many states does the Markov chain have?
(c) Give the transition probabilities of the chain.
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Answers: 1
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There are k players, with player i having value vi > 0, i = 1,...,k. In every period, two of the...
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