Path dependence

Path dependence is the idea that past events or decisions constrain and shape later ones, often in disproportionate ways through mechanisms such as increasing returns and positive feedback. The videotape format war is cited as an example, where VHS gained dominance over Betamax from a negligible early lead through network effects, manufacturer bandwagoning, and Sony's refusal to license Betamax to pornography companies. The article also describes the standard railway gauge of 143.5 cm, traced to George Stephenson's work on the Liverpool and Manchester Railway in the late 1820s, and notes that Liebowitz and Margolis argue real-world cases of private locked-in inefficiency are rare.