Path dependence theory originated to explain inferior technologies persisting in markets

Evidence

In David’s initial framework (1985) inefficiency was considered a necessary element, because he set out to explain a puzzle: how could an inferior solution like the QWERTY keyboard endure in a market economy? So he started with inefficiency right from the beginning. — Jörg Sydow, Georg Schreyögg, and Jochen Koch, Organizational Path Dependence, 50

Categorization

• CANDY: The QWERTY-economics origin story is an easy elevator anecdote about why worse standards win.
• XREF: Connects to standard economics literature on lock-in and network effects (Arthur, David) likely already in the reader’s orbit.