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On the emergence of ecological and economic niches

Journal of Bioeconomics Aims and scope

A Correction to this article was published on 06 June 2020

This article has been updated

Abstract

The origin of economic niches, conceived as potential markets, has been mostly neglected in economic theory. Ecological niches emerge as new species evolve and fit into a web of interactions, and the more species come into existence, the more (exponentially or power-law distributed) ecological niches emerge. In parallel fashion, economic niches emerge with new goods, and niche formation in economics is also exponentially or power-law distributed. In economics and ecology alike, autocatalytic processes drive the system to greater and greater diversity. Novelty begets novelty in a positive feedback loop. An autocatalytic set of self-enabling transactions feed back upon one another in combinatoric fashion to generate progressive diversity. While these combinatorial dynamics cannot be prestated, the model explains the “hockeystick of economic growth”—a pattern of prolonged stasis followed by a sudden takeoff, such as occurred during the Industrial Revolution or the Cambrian explosion in ecology. Several implications derive from our niche emergence model, including the idea that the evolutionary process of technological change is not something we do; rather, it happens to us.

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Change history

  • 06 June 2020

    In the original publication of the article, equation 2 was published incorrectly.

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Acknowledgements

Many persons helped us with the ideas in this manuscript. For helpful early conversations and guidance we thank Brian Arthur, Pontus Braunerhuelm, William Butos, Abigail Devereaux, Maryann Feldman, April Franco, David Harper, Anita McGahan, Simon Parker, Mario Rizzo, Mark Sanders, Christian Schade, David Lucas and Igor Matutinovic. None of them is responsible for any errors or infirmities of our analysis.

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Authors and Affiliations

  1. Biological Institute, Tomsk State University, Tomsk, Russia

    Roberto Cazzolla Gatti

  2. Konrad Lorenz Institute for Evolution and Cognition Research, Klosterneuburg, Austria

    Roberto Cazzolla Gatti

  3. Syracuse University, Syracuse, NY, USA

    Roger Koppl

  4. Department of Biological Sciences, Towson University, Towson, MD, USA

    Brian D. Fath

  5. Advanced Systems Analysis Program, International Institute for Applied Systems Analysis, Laxenburg, Austria

    Brian D. Fath

  6. Department of Environmental Studies, Masaryk University, Brno, Czech Republic

    Brian D. Fath

  7. Institute for Systems Biology, Seattle, WA, USA

    Stuart Kauffman

  8. SmartAnalytiX, Vienna, Austria

    Wim Hordijk

  9. Department of Biology, University of Florida, Gainesville, FL, USA

    Robert E. Ulanowicz

  10. Center for Environmental Science, University of Maryland, Solomons, MD, USA

    Robert E. Ulanowicz

Authors
  1. Roberto Cazzolla Gatti
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  2. Roger Koppl
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  3. Brian D. Fath
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  4. Stuart Kauffman
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  5. Wim Hordijk
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  6. Robert E. Ulanowicz
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Corresponding authors

Correspondence to Roberto Cazzolla Gatti or Roger Koppl.

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Cazzolla Gatti, R., Koppl, R., Fath, B.D. et al. On the emergence of ecological and economic niches. J Bioecon 22, 99–127 (2020). https://doi.org/10.1007/s10818-020-09295-4

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  • DOI: https://doi.org/10.1007/s10818-020-09295-4

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