How Competitive Evolutionary Dynamics First Created then Ruined Windsurfing

14 Pages Posted: 26 Feb 2015

See all articles by Stuart J. Thomas

Stuart J. Thomas

RMIT University - School of Economics, Finance and Marketing; Financial Research Network (FIRN)

Jason Potts

RMIT University

Date Written: February 24, 2015

Abstract

This paper investigates a competitive evolutionary process we call ‘innovation overshooting’ in equipment-based sports, using windsurfing as a case study. New sports, in particular equipment-based lifestyle sports, can experience a rapid rise in popularity but eventually technology-driven competition leads to equipment overshooting the capabilities and financial budgets of most users. This Schumpeterian market process leads to a decline in participation and the eventual collapse of the market for the sport's equipment. Models of endogenous overshooting are established in the study of finance and business cycles, and have recently been extended to the music and design industry. We extend this model to the sports equipment sector finding clear evidence of evolutionary competitive technological and market overshooting.

Keywords: Innovation overshooting, sports, sports equipment, creative instability

JEL Classification: L83

Suggested Citation

Thomas, Stuart J. and Potts, Jason, How Competitive Evolutionary Dynamics First Created then Ruined Windsurfing (February 24, 2015). Available at SSRN: https://ssrn.com/abstract=2569408 or http://dx.doi.org/10.2139/ssrn.2569408

Stuart J. Thomas

RMIT University - School of Economics, Finance and Marketing ( email )

Business
Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Jason Potts (Contact Author)

RMIT University ( email )

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