Geometric decay in level-expanding quasi-birth-and-death (QBD) models

Level-expanding quasi-birth-and-death (QBD) processes have been shown to be an efficient modeling tool for studying multi-dimensional systems, especially two-dimensional ones. Computationally, it changes the more challenging problem of dealing with algorithms for two-dimensional systems to a less challenging one for block-structured transition matrices of QBD type with varying finite block sizes. In this paper, we focus on tail asymptotics in the stationary distribution of a level-expanding QBD process. Specifically, we provide sufficient conditions for geometric tail asymptotics for the level-expanding QBD process, and then apply the result to an interesting two-dimensional system, an inventory queue model.