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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/13027 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/13027 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/13027 archive 351 disk0/00/00/80/29 2016-01-15 08:38:55 2021-08-27 17:19:36 2016-01-15 08:38:55 monograph show 3 Dercole F. 7808 Dieckmann U. 1668 0000-0001-7089-0393 Obersteiner M. 7255 0000-0001-6981-2769 Rinaldi S. 7286 pub iis_ecl prog_eep This paper is about the emergence of technological variety arising from market interaction and technological innovation. Existing products in the market compete with innovative ones resulting in a slow and continuous evolution of the underlying technological characteristics of successful products. When technological evolution reaches an equilibrium, it can either be an ESS (Evolutionary Stable Strategy), where marginally innovative products do not penetrate the market, or a branching point, where new products coexist along with established ones. Thus, technological branching can give rise to product variety. In the paper we first introduce Adaptive Dynamics (AD), a recently proposed theory of evolutionary processes, aiming at modelling various features of technological change. Then, a first application of AD in economics is presented and discussed in detail. The limitations of the AD approach, as well as some promising further applications in economics and social sciences, are briefly discussed at the concluding section. 2006-12 published IR-06-070 IR-06-070 1208 66 219 253 public interim_report IIASA, Laxenburg, Austria 40 FALSE info:eu-repo/semantics/book