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Path dependence

This article is about path dependence in economics and social sciences. For a similar topic in physics, see Path dependence (physics).

Path dependence is a concept in the social sciences, referring to processes where past events or decisions constrain later events or decisions.[1][2] It can be used to refer to outcomes at a single point in time or to long-run equilibria of a process.[3] Path dependence has been used to describe institutions, technical standards, patterns of economic or social development, organizational behavior, and more.[4][1]

In common usage, the phrase can imply two types of claims. The first is the broad concept that "history matters," often articulated to challenge explanations that pay insufficient attention to historical factors.[1][5][6] This claim can be formulated simply as "the future development of an economic system is affected by the path it has traced out in the past"[7] or "particular events in the past can have crucial effects in the future."[1] The second is a more specific claim about how past events or decisions affect future events or decisions in significant or disproportionate ways, through mechanisms such as increasing returns, positive feedback effects, or other mechanisms.[1][2][3][5]

  1. ^ a b c d e Mahoney, James; Schensul, Daniel (2006-03-16). Historical Context and Path Dependence. Oxford University Press. pp. 454–471. doi:10.1093/oxfordhb/9780199270439.003.0024. ISBN 0199270430.
  2. ^ a b Puffert, Douglas. "Path Dependence". E-H.net. Economic History Association. Retrieved 2022-03-10.
  3. ^ a b Zhu, Kevin; Kraemer, Kenneth L.; Gurbaxani, Vijay; Xu, Sean Xin (2006). "Migration to Open-Standard Interorganizational Systems: Network Effects, Switching Costs, and Path Dependency". MIS Quarterly. 30: 515–539. doi:10.2307/25148771. ISSN 0276-7783. JSTOR 25148771. S2CID 2182978.
  4. ^ Baláž, Vladimir; Williams, Allan M. (2007). "Path-dependency and Path-creation Perspectives on Migration Trajectories: The Economic Experiences of Vietnamese Migrants in Slovakia1". International Migration. 45 (2): 37–67. doi:10.1111/j.1468-2435.2007.00403.x. ISSN 1468-2435.
  5. ^ a b Pierson, Paul (2000). "Increasing Returns, Path Dependence, and the Study of Politics". The American Political Science Review. 94 (2): 251–267. doi:10.2307/2586011. hdl:1814/23648. ISSN 0003-0554. JSTOR 2586011. S2CID 154860619.
  6. ^ Liebowitz, S.; Margolis, Stephen (2000). Encyclopedia of Law and Economics. E. Elgar. p. 981. ISBN 978-1-85898-984-6. Most generally, path dependence means that where we go next depends not only on where we are now, but also upon where we have been.
  7. ^ Hodgson, Geoffrey Martin (1993). Economics and evolution : bringing life back into economics. Ann Arbor: University of Michigan Press. ISBN 0472105221.

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