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Hey i'm doing a paper on the creation of an industry that has spawned from the another industry. I was wondering if there was particularly any interesting economic theory i should look at.
Some of my ideas For example because of the inherent social values of society demand is formed for newer services not traditionally offered by the industry creating a niche market segment. To which i guess i can talk about utility maximisation. And that's about how much i have so far.
Have a look at monopolistic competition. It basically details how many industries can find their own niche in a differentiated product market. Some prominent papers in the subject:
The literature on innovation deals with activities such as research and development that give rise to new products. A good reference is "Innovation and Incentives" by Scotchmer.
