But, if Iceland were the first to choose a winning standard, it would be very well rewarded.
On Thu, May 30, 2002 at 07:00:58PM -0400, Wojtek Sokolowski wrote:
>
> Jordan:
> Brian Arthur (_Increasing Returns and Path Dependency_) argues
> otherwise. In essence his argument is that the existing infrastructure
> significantly reduces transaction costs for new ventures (be it new
> establishments or technological innovation) - which creates "path
> dependence" or a situation where any new addition will resemble what is
> already in place - that holds true for geographical concentration of
> industries (cf. Krugman), or domination of industries by certain products
> (e.g. QWERTY typewriter, VHS video recording system, or Windows operating
> system) - even though they are often technologically inferior to
> alternatives. There is no reason to believe that gasoline powered
> transportation will be any different. You need a *major* shock to break
> that path dependence, and I do not see one coming any time soon.
>
> wojtek
>
-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu