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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1012 |
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4). Bebcuk and Roe use path dependency to explain why it is that countries don't always choose the most efficient governance structure. The key to path dependency is that not only is the current location of a country's legal systems important, but also the path they took to get there. As an example, taking a photograph of an object in motion tells us where it is but does not tell us where it came from, and where inertia will lead it...
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As an example, taking a photograph of an object in motion tells us where it is but does not tell us where it came from, and where inertia will lead it.
Two sources of path dependence are identified: structure driven and rule driven. Structure driven path dependence is about the way in which initial structures in an economy directly influence subsequent structures (Bebchuk & Roe 1999)...
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