Review of Industrial Organization

, Volume 10, Issue 6, pp 737–747 | Cite as

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

  • Morten Hviid
  • Bente Villadsen


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.

Key words

Concentration indices spatial product differentiation order statistics uniform distribution audit services 


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Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Morten Hviid
    • 1
  • Bente Villadsen
    • 2
  1. 1.Department of EconomicsUniversity of WarwickCoventryEngland
  2. 2.John M. Olin School of BusinessWashington University in St. LouisSt. LouisUSA

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