Path dependency, especially in corporate governance/functioning and political theory.

Question

I’ve read up on the topic but can’t get clarity. For instance, what’s the difference between path dependency and a simple reluctance to change?

In: Other

Answer 1

In short, it means that society and history matters. US is the way it is, due to American society and history.

It can be explained by game theory. Somewhere in the history events or decisions happened that led to either A or B. A or B then led to Z or Y. And so on and so on.

One example would be our calendar system. It’s very ineffective and illogical. Yet everyone uses it. Changing it would be possible but it would cost so much resources, it’s far easier to just go on with it.