Self-reinforcement drivers were catalogued in six technology-economics types.

Evidence

The empirical studies that have provided ample evidence for the existence of self-reinforcing and non-reversible dynamics have been primarily conducted in the field of technology development and diffusion. In economic studies (Arthur, 1994; Cowan, 1990; Katz and Shapiro, 1985, North 1990) so far, basically six types of self-reinforcing dynamics can be identified: economies of scale, (direct and indirect) network externalities, learning effects, adaptive expectations, coordination effects, and complementarities. Examining the economic effects in more detail reveals, however, that they develop under special conditions only, namely if the decision to reproduce a particular option is suggested by a utility calculus. Without excluding this case, it seems too restrictive a starting point for explaining institutional and organizational paths (see also Ortmann, 1995; Crouch and Farrell, 2004; Eden, 2004). — Georg Schreyögg and Jörg Sydow, The Hidden Dynamics of Path Dependence, 48

Categorization

• XREF: Connects to the Milgrom-style institutional account where increasing returns and network effects make one equilibrium self-selecting in early modern trade.