“We said that one thing that people often equate with path dependence is increasing returns and we’ve shown that although maybe empirically the case that a lot of path dependence does come from increasing returns, logically they’re completely separate. You can have path dependence without increasing returns, you can have increasing returns and not get path dependence. We also talked about how one big cause of path dependence may be externalities. Inner dependencies between choices, especially big choices like public projects, and those externalities, whether they’re positive or negative. Can create that dependence. But the negative [inaudible] may have a larger effect. “- Transcript from Scott Page Coursera
Source:
Scott Page Model Thinking MOOC Course
