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On Thursday, May 30, 2002, at 09:34 PM, Michael Perelman wrote:
>
> 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
>