Path Creation, Path Dependency, and Alternative Theories of the Firm

@article{Stack2003PathCP,
  title={Path Creation, Path Dependency, and Alternative Theories of the Firm},
  author={Martin Stack and Myles P Gartland},
  journal={Journal of Economic Issues},
  year={2003},
  volume={37},
  pages={487 - 494}
}
During the 1980s, Paul David and Brian Arthur published several papers that are now regarded as the foundation of path dependency (David 1985; Arthur 1989, 1990). The basic assertion in these and related essays is that sub-optimal or inefficient technologies can be become locked in as industry standards, and in instances where there are significant network effects, these inefficiencies may persist for extended periods of time.'1 While we are convinced by the path dependency insight that… 
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