Niche differentiation can arise from competition. For instance, species X has a fundamental niche of the entire slope of a hillside, but its realized niche is only the top portion of the slope because species Y, which is a better competitor but cannot survive on the top portion of the slope, has excluded it from the lower portion of the slope. With this scenario, competition will continue indefinitely in the middle of the slope between these two species. Because of this, detection of the presence of niche differentiation (through competition) will be relatively easy. It is also important to remember that there is no evolutionary change of the individual species in this case; rather this is an ecological effect of species Y out-competing species X within the bounds of species Y's fundamental niche.
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