Beta distributed market shares in a spatial model with an application to the market for audit services

Morten Hviid, Bente Villadsen

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


We show that if firms locate on a circle according to a uniform distribution, their market shares will be beta distributed. The result implies that concentration ratios will be skewed. We apply the result to the market for auditing services in the US and show the beta distribution outperforms other relevant distributions.
Original languageEnglish
Pages (from-to)737-747
Number of pages11
JournalReview of Industrial Organization
Issue number6
Publication statusPublished - 1 Dec 1995


  • audit services
  • concentration indices
  • order statistics
  • spatial product differentiation
  • uniform distribution

Cite this