path dependence
"Path dependence" highlights how historical events and decisions shape the current and future state of systems, often leading to persistent practices or technologies.
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Definition
C1General
(academic, technical)A situation where the outcome is heavily influenced by the sequence of previous events or decisions.
Example
- The adoption of the QWERTY keyboard layout is a classic example of path dependence.
- Path dependence explains why certain inefficient practices persist in organizations.
C2Economics
(technical, academic)A theory suggesting that the market may continue to favor an early-introduced, less efficient technology due to its initial traction.
Example
- The dominance of VHS over Betamax in the 1980s is a case of path dependence in technology markets.
- Path dependence can lead to suboptimal economic outcomes due to historical market choices.