Abstract: Sheds some light on how markets develop. In particular, it suggests that the ‘new economy’ is not much different from the ‘old economy’ and that in general, the early evolution of markets can significantly shape their later structure. The main arguments are elaborated in four chapters, each of them extensively illustrated with product-case studies (internet, automobiles, television, or mobile phones, etc.). Ch. 2 explores the drivers of innovation and concludes that new technologies are basically pushed on to the market from the supply side. Ch. 3 looks at the dynamics of entry in a new market. Ch. 4 deals with the emergence of a dominant design as a consensus good. Ch. 5 shows how the dominant design shapes the nature of the competition in the new mass market and describes the logistical growth pattern characteristic of most new markets. The last chapter is devoted to sketch out the basic features of market evolution that follow from the events in the early stages of development.

Keywords: competition, consensus good, dominant design, entrepreneur, innovation, logistic growth, market entry, new economy, new market, old economy, supply push, technology