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

Morten Hviid; Bente Villadsen

doi:10.1007/BF01024305

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 journal › Article › peer-review

6 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	737-747
Number of pages	11
Journal	Review of Industrial Organization
Volume	10
Issue number	6
DOIs	https://doi.org/10.1007/BF01024305
Publication status	Published - 1 Dec 1995

Keywords

audit services
concentration indices
order statistics
spatial product differentiation
uniform distribution

Access to Document

10.1007/BF01024305

Cite this

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

abstract = "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.",

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