Abstract
Path dependence refers to the idea that ‘history matters’, that is, that various types of contingent events may have long-term consequences. This article provides some formalization of the concept and assesses its usefulness in elucidating economic phenomena.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Durlauf, S.N. (2008). Path Dependence. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2583-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2583-1
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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