The Involution of Industrial Life Cycle on Atlantic City Gambling Industry

TL;DR

This paper analyzes the historical evolution of Atlantic City's gambling industry through the industrial life cycle theory, employing data mining to verify industry phases and highlighting innovation's role in recovery.

Contribution

It applies the industrial life cycle framework to a service industry, using data mining to empirically verify industry phases and the impact of innovation on industry recovery.

Findings

Industry evolved from introduction to decline with structural changes.

Recession was confirmed as part of the industry life cycle.

Innovation contributed to the industry's ongoing recovery.

Abstract

The industrial life cycle theory has proved to be helpful for describing the evolution of industries from birth to maturity. This paper is to highlight the historical evolution stage of Atlantic City's gambling industry in a structural framework covered by industrial market, industrial organization, industrial policies and innovation. Data mining was employed to obtain from local official documents, to verify the module of industrial life cycle in differential phases as introduction, development, maturity and decline. The trajectory of Atlantic City's gambling sector evolution reveals the process from the stages of introduction to decline via a set of variables describing structural properties of this industry such as product, market and organization of industry under a special industry environment in which industry recession as a result of theory of industry life cycle is a particular evidence be proved again. Innovation of the gambling industry presents the ongoing recovering process of the Atlantic City gambling industry enriches the theory of industrial life cycle in service sectors.