Abstract ABSTRACT: This paper builds on the results of prior research on the structure of the U.S. market for audit services. Two complementary empirical approaches are pursued. First, inferences are made about specific aggregate Big Eight comparative advantages from an analysis of auditor selections by 299 sample firms from 1964 to 1980. Second, dynamic trends within the Big Eight are considered by examining changes in individual audit firm market shares across extensive client samples at four points in time--1950, 1960, 1970, and 1980. In general, analysis Of auditor change data indicates no substantial upward shift in aggregate Big Eight "equilibrium" market share in the two decades studied. Rather, it would appear that movements in this time-frame to, the Big Eight reflect a long process of adjustment to relatively stable conditions of comparative advantage. Changes in within Big Eight market shares, on the other hand, strongly support the not]on of increasing intra-Big Eight competition for nonregulated clients.
Danos et al. (Wed,) studied this question.