I would like to produce a simple distribution of competitive market firms based on their revenues. I know the number of firms in the market
n, the total market revenue
TR and, therefore, also the average revenue per firm.
I had the idea that I could bin revenues and apply the Poisson distribution to populate a distribution of firms in the market based on revenue. For example, 2 firms with $0 - $2 M in revenues, 4 firms with $2 - $4 M in revenues, etc.
Is anyone familiar with any research regarding the distribution of firms' revenues in a competitive market that would provide guidance or confirmation of doing something like this?