Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"market Shares Follow the Zipf Distribution"

Hila Riemer, Suman Mallik, and Devanathan Sudharshan

 

First Author :

Hila Riemer
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

hriemer@uiuc.edu

Create Profile


Second Author :

Suman Mallik
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

mallik@uiuc.edu

Create Profile


Third Author :

Devanathan Sudharshan
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

sudharsh@uiuc.edu

http://www.business.uiuc.edu/faculty/sudharsh.html

 
 
Abstract :
 
The Zipf distribution is known to describe various natural phenomena, including city populations in the United States, frequency of English words in literature, immune system response in human beings, and certain aspects of Internet traffic. Using data from 70 markets, we show that the market shares by rank order follow the Zipf distribution. Our work makes a fundamental contribution in understanding the distribution of market shares, as we make no assumption about the order of entry and our results are valid for arbitrary number of competitors in market. We compare the predictions of our model with those from the analytical models in marketing literature. The comparison reveals that market share predicted by the Zipf model fits well with the predictions from the analytical models.
 
 
Keywords :
 
Market Share, Market Structure, Zipf distribution
 
 
Manuscript Received : 2002
Manuscript Published : 2002
 
 
This abstract has been viewed 2552 times.
Click here to view the full text of this paper.