The Preisach diagram calculated for an assembly of &ggr;‐Fe2O3particles at a packing density of 20% by volume has been used to obtain a distribution function of the particle remanence‐coercivities in the absence of interaction fields. This function, which has a peak at 275 oe, is then compared with the function obtained by differentiating the remanence hysteresis loop, i.e., with the distribution function in the presence of interaction fields. It is found that the latter function is broader than the former; this can be qualitatively explained in terms of a two‐particle model for the interacting particles. The magnitude of the interaction fields can be estimated from the Preisach diagram and is found to have a maximum value of roughly 300 oe.