Preferences are socially constructed, so dominant solutions emerge from self-fulfilling expectations

Evidence

These self-reinforcing effects relate to the interactive building of preferences. With this concept, as opposed to neoclassical economics, individual preferences are not considered to be fixed; instead, they are assumed to vary in response to the expectations of others. Often quoted examples highlight the need for social belonging and the desire to end up on the winning side. The more people are expected to prefer a particular product or service (and not another), the more attractive that product or service becomes (Leibenstein, 1950). Since users are often uncertain about the right choice, they feel rewarded by the fact that others are likely to prefer the same. Because of this self-reinforcing dynamic, a dominant solution is likely to emerge, more often than not by way of a selffulfilling prophecy (in most cases on the basis of more or less random first choices and from hearsay). — Jörg Sydow, Georg Schreyögg, and Jochen Koch, Organizational Path Dependence, 90

Categorization

• DEFINE: Defines the concept of interactive preference building against the neoclassical assumption of fixed preferences.
• XREF: Connects to QWERTY/keyboard-lock-in and network-externality literature, and to Leibenstein’s bandwagon and snob effects.