Classroom Companion: Business

11.5 · Conclusions

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11
References
Arthur, W. B. (1990). Positive feedbacks in the economy. Scientific American, 262, 92–99.
Bannock, G., Baxter, R. E., & Davis, E. (1998). The penguin dictionary of economics (6th ed.). 
Penguin Books.
Brian, A. W., Ermoliev, Y. M., & Kaniovski, Y. M. (1986). Strong laws for a class of path-dependent 
stochastic processes with applications. In V. I. Arkin, A. Shiraev, & R. Wets (Eds.), Stochastic 
optimization (Lecture notes in control and information sciences) (Vol. 81). Springer.
Liebowitz, S. J., & Margolis, S. E. (1995). Path dependence, lock-in, and history. Journal of Law, 
Economics and Organization, 11(1), 205–226.
Wikipedia. (n.d.). Videotape format war.
Further Reading
Arthur, W. B. (1994). Increasing returns and path dependence in the economy. University of Michigan 
Press.
 
Chapter 11 · Path Dependence

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© The Author(s), under exclusive license to Springer Nature 
Switzerland AG 2021
H. Øverby, J. A. Audestad, Introduction to Digital Economics, 
Classroom Companion: Business,
https://doi.org/10.1007/978-3-030-78237-5_12
177
Lock-In and 
Switching Costs
Contents
12.1 
 Introduction – 179
12.2 
 Switching Costs – 180
12.3 
 Lock-In Mechanisms – 181
12.3.1 
 Spare Parts, System Updates, 
and Maintenance – 181
12.3.2 
 Training – 181
12.3.3 
 Incompatibility
and Compatibility – 181
12.3.4 
 Potential Loss of Information – 183
12.3.5 
 Investments and Economic
Lifetime – 183
12.3.6 
 Difficult-to-Terminate
Contracts – 183
12.3.7 
 Loyalty Programs – 184
12.3.8 
 Bundling – 184
12.3.9 
 Search Algorithms – 184
12.3.10  Product Tying – 185