Three Dollar Table
Player A starts with 1 dollar and player B with 2. Each round the loser pays the winner 1 dollar, and A wins any given round with probability 2/3, independently of the others. They play until one of them is broke.
Tracking A's fortune gives a chain on :
| from | to 0 | to 1 | to 2 | to 3 |
|---|---|---|---|---|
| 0 | 1 | 0 | 0 | 0 |
| 1 | 1/3 | 0 | 2/3 | 0 |
| 2 | 0 | 1/3 | 0 | 2/3 |
| 3 | 0 | 0 | 0 | 1 |
Starting from state 1, what is the probability the chain is absorbed at 3, so that A takes everything?
Answer format: round to 3 decimal places.
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