Could you please help me with the below result?
How do we get from here
$(1+2\sum_{j=1}^\infty\rho^j)π_0=1$
To here
$π_0=(1-\rho)/(1+\rho)$
Many thanks
Could you please help me with the below result?
How do we get from here
$(1+2\sum_{j=1}^\infty\rho^j)π_0=1$
To here
$π_0=(1-\rho)/(1+\rho)$
Many thanks
Hint: If $\lvert \rho \rvert < 1$, then you can sum the GP : $\displaystyle \sum_{j=1}^\infty \rho^j = \dfrac{\rho}{1-\rho}$