Path Dependence
Path dependence can lock in suboptimal solutions when switching costs are high.
You inherit the world you build.
Path dependence describes how outcomes depend on the sequence of prior decisions, not just current conditions. The chapter uses QWERTY as an example: designed for mechanical typewriters in the 1870s, suboptimal for typing speed and ergonomics, but persisting globally because millions learned it and switching costs are high.
Business Application of Path Dependence
Path dependence can lock in suboptimal solutions when switching costs are high. This is why convergence doesn't always occur even when superior alternatives exist. Strategic decisions should account for whether the industry has path-dependent lock-in or whether competitive dynamics still permit convergence toward optimal solutions.
Path Dependence Appears in 2 Chapters
QWERTY persists despite suboptimality because path dependence locks in early choices - the genetic code similarly persists despite not being obviously optimal.
Path dependence preventing convergence →Niche construction creates path dependence - organisms become committed to constructed environments and cannot easily abandon them.
Path dependence in niche construction →