Path Dependency
Non-Ergodicity
Characteristic-Accidental events do not cancel out
Unpredictability
Characteristic-Because early events have a large effect and are partly random, many outcomes may be possible
Potential path ineficiency
Characteristic-In the long run, the outcomes that have become locked in may generate lower payoffs than a foregone alternative may have
Inflexibility
Characteristic-The farther into the process you get, the harder it becomes to switch paths
Multiple equilibria
Effect-A different number of outcomes are available that could be considered equilibrium
A critical role for timing and sequencing
Effect-In increasing returns process, when an event occurs may be crucial
Intertia
Effect-Once an increasing returns process is established, positive feedback may lead to a single equilibrium
Contingency
Effect-Relatively small events occurring at the right moment can have an enduring effect