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Side 125

Path Dependence

How earlier events reshape later option sets so that history matters not merely as background but as part of the mechanism generating current outcomes.

initial condition→sequence→reinforcement→lock-in→adaptation
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Path dependence requires reinforcement, not just chronology.

Several mechanisms can make an early move progressively harder to reverse.

01 · Increasing returns

Benefits rise as adoption accumulates.

Learning, scale and complementarity can reward staying on an established path.

02 · Switching costs

Change becomes expensive after commitment.

Training, infrastructure, contracts and coordination can make alternatives less attractive later.

03 · Network effects

Value depends on compatible users or systems.

A widely adopted standard can persist because others already use it.

04 · Learning

Experience improves the incumbent option.

Accumulated knowledge can deepen performance gaps even when alternatives were initially comparable.

Order can change outcomes even with similar ingredients.

The same events arranged differently may create different institutions, technologies or habits.

01 · Opening

Multiple options remain feasible.

Early uncertainty is often high before reinforcing mechanisms accumulate.

02 · Trigger

A small event shifts relative advantage.

The trigger need not be the deepest cause; timing can magnify it.

03 · Reinforcement

The selected path gains self-support.

Complementary investment and expectation make reversal progressively harder.

04 · Closure

Alternatives become costly or invisible.

Lock-in can be economic, institutional, cognitive or infrastructural.

Some periods temporarily widen the option set.

Crises, technological change and institutional breakdown can weaken existing reinforcement.

01 · Critical juncture

Constraints relax enough for divergent choices.

The concept is useful only when the window and feasible alternatives can be specified.

02 · Contingency

Small differences can matter at sensitive moments.

Contingency does not mean outcomes were random or causeless.

03 · Branching

Different decisions create different downstream structures.

Branches become analytically meaningful when later dependence can be traced.

04 · Closure

New institutions can quickly harden.

A window of change may be brief even when its consequences persist.

Lock-in can be strong without being permanent.

Exit depends on the source of reinforcement and whether alternatives can reduce switching costs.

01 · Layering

Add new structures alongside old ones.

Gradual change can accumulate until the original institution functions differently.

02 · Conversion

Reuse existing structures for new purposes.

Institutional forms can persist while goals and interpretation change.

03 · Replacement

Build a credible alternative path.

Substitution works when coordination and switching barriers can be overcome.

04 · Reversal

Undo reinforcing feedback deliberately.

Successful reversal often requires synchronized changes rather than one isolated intervention.

History matters most when it changes the future choice set. Path dependence is stronger than saying 'the past influenced the present'; it requires a mechanism through which sequence alters later probabilities or costs.