Journal of Accounting and Economics Vol. 25 No. 3 1998
Concentration without differentiation: A new look at the determinants of audit market concentration
open access
Abstract
We show that a model of undifferentiated price competition closely predicts US audit market concentration. Contracting practices, client size distributions and differences in auditor productivity jointly determine audit firms' market shares. In contrast to prior literature, neither quality differences nor economies of scale for larger firms are necessary in our model to explain audit market concentration.
- DOI
- 10.1016/s0165-4101(98)00027-5
- Volume
- 25
- Issue
- 3
- Pages
- 235-253
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref