Increasing returns make the status quo preferable to uncertain alternatives.

Evidence

Second, the efficiency mechanism refers to comparative advantages of the existing structure against forthcoming alternatives, which Pierson (2000, p. 252) calls ‘increasing returns.’ Increasing returns occur ‘when the relative benefits of an activity compared with other options increase over time.’ Sunk costs and acquired rights will make abolishment of the existing system – in which money, expertise, and time have been invested – very expensive. The proposed alternative not only requires additional investments, but also has uncertain benefits. Many stakeholders favor the shortcomings of the status quo above undefined future advantages. — Georg Schreyögg and Jörg Sydow, The Hidden Dynamics of Path Dependence, 259

Categorization

• DEFINE: Pierson’s ‘increasing returns’ defined precisely, plus the sunk-cost and acquired-rights logic behind it.
• XREF: Same logic as locked-in buyers facing hold-up from suppliers in the trust volume — switching costs turn the status quo into the rational choice.