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