Six distinct self-reinforcing mechanisms drive path-dependent lock-in.
Evidence
Six types of self-reinforcing mechanisms are held responsible for a process of path dependence: economies of scale and scope (main focus: cost), direct and indirect network externalities (utility), learning (skills/capabilities), adaptive expectations and expectations of expectations (standardization), coordination effects (interaction), and complementary effects (connectivity) (Koch, 2006). — Georg Schreyögg and Jörg Sydow, The Hidden Dynamics of Path Dependence, 371
Categorization
- XREF: Echoes the volume’s broader treatment of increasing returns and also the trust literature’s account of how repeated interaction locks in conventions.