# Broken Stick Rule

Broken Stick Rule

The broken stick rule refers to the expected sizes of ordered spaces created by random points on a line. If the unit interval is divided into spaces by random points, the expected size of the largest space is . The broken stick rule has been suggested as an explanation for the apparent power law behavior of firm sizes and market shares.

n

n-1

th

i

n-i

∑

j=0

1

n-j

n