arcgis desktop - Markov chains, cellular automata, and raster algebra

I need to build a probabilistic cellular automaton for simulating land-use changes and am wondering how to implement this in a GIS. I understand that Markov chains are a way of doing this, and IDRISI has some sort of module for Markov chains, but I have no access to IDRISI. Someone said earlier that, with raster data, this can, in theory, be done with any GIS that can do raster algebra. Presumably this means that it can even be done in ArcGIS, and I think I've figured out how to build cellular automata in ModelBuilder (once I know with certainty how to make iteration work there).

Still, I can find next to no practical advice on this. Once I have two datasets, one showing the land use at a certain point in time (time A) and the other at a later time (time B), I imagine doing the following (correct me if I'm wrong):

1. 
   

   If there are (for example) 3 types of land use, then there are 9 possible things that can happen to a cell from time A to time B; thus, reclassify each dataset such that each land use is represented by a different number (for example, 9, 11, and 14 at time A and 3, 4, and 5 at time B);

   
   


2. 
   
   

   Divide one raster by the other, obtaining a raster with 9 possible cell values.

   
   


3. 
   

   Determine the percentage of cells in the new raster that has each of the 9 values (I forgot, how does one do this in ArcGIS?); those will be the probabilities of each type of change (or lack thereof) in land use.

   
   

What I cannot figure out, though, is how to apply these probabilities during the next iteration. Finally, I wonder if there is a way of making an external factor (say, proximity to roads) influence the spatial distribution (not the overall likelihood) of change in my model.

Can anyone recommend where to find information on how to do this in ArcGIS?

Answer

I have found out that an extension to ArcGIS (Land Change Modeler) has some of the same capabilities as IDRISI (like IDRISI, or TerrSet, it is made by Clark Labs). Among these shared capabilities, reportedly, is Markov chain analysis. I will give this extension a try (I am having trouble installing it, but that is a matter for another question).