Introduction
The purpose of this paper is to provide a written summary as well as a reflective response to the article ‘Path Dependence, Lock-in and History’ by S. J. Liebowitz. In order to do this, the paper will address several areas which will include; the topic being addressed; how the problem addressed is approached; the methodology used; the data or evidence used; conclusions of the article; the nature of argument; and the most fascinating aspect of the article.
Topic addressed
In this article, the main point being addressed is path dependence. This can be extracted from the article’s statement of intent whereby it is clearly indicated that the paper aims at examining path dependence. Therefore, the article is centered on path independence as the topic.
Approach used
In addressing path dependence, the author of the article makes use of a theoretical approach. From the abstract of the article, the author indicates the main point of arguments of the article. For instance, he asks himself whether economies as well as markets make errors that are remediable when it comes to choosing the products (Liebowitz, 2000).
The author further seeks to establish whether the economy lock-in to these erroneous choices despite the fact that economies and markets have the knowledge that these choices are not viable and are readily available.
The author tries to argue about the problem with support from the available literature. He seemingly argues for the topic since; according to him, indeed lock-ins and errors occur. The author uses illustrations to further support his argument. Therefore, the topic of the article can be said to have been approached theoretically (Liebowitz, 2000).
Methodology used in the article
In the article, there is incorporation several economic assumptions which include the restrictive assumptions. In order to conduct analysis, the author uses illustrations whereby he examines the choice of market in video recorder formats.
Data used
The author uses theoretical as well as practical data in arguing the problem out. The author makes use of theoretical data in most of the article. The practical data is used in the mathematical counterparts as well as memory in defining path dependence.
The author obtains the data from other literatures addressing the same topic. In addition to this, the author defines the problem through extracting data from the probability theory as used in mathematical constructs (Liebowitz, 2000).
Conclusion of the article
According to the findings of the article, there is a path independence claim in that a minor or fleeting advantage results to there being some sort of technology, standard or even a product and as such, it can have essential influences, which, according to him are irreversible, on the eventual allocation of the various resources of the market irrespective of whether the environment is characterized by voluntary decisions or maximizing behavior (Liebowitz, 2000).
In addition to this, the author indicates that the literatures on path dependence behaviors are advanced with mathematical literature concerning nonlinear dynamic models acting as motivators. The author further asserts that these nonlinear dynamic models identify path dependence as a dependence on initial which is sensitive in nature (Liebowitz, 2000).
The author indicates that the lock-in by historical events exist as a path dependence property and as such, it is analogously identified as a key finding especially in those areas where the historical events are considered insignificant.
The author finds out that when such kind of a path dependence surfaces, it follows that there is a lower likelihood that the marginal adjustments of a particular agent will offer adequate assurance with regard to optimization of suboptimal end results or outcomes leading to the market failure (Liebowitz, 2000).
While the underlying normative concerns according to the author have been a prominent aspect of path dependence in literatures, not all the phenomena described as path dependence should be taken to imply failure of the market.
These findings indeed align with what has been learned concerning the topic. The findings are sufficient and therefore worthwhile according to my experience.
Nature of Argument
With regard to how the author has addressed the problem, the article is inclusive of literature review as well as illustrations and as such, the author can be said to have made good arguments in trying to address the problem sufficiently.
Further support for his good presentation of the argument can be derived from the use of economic models. Generally, the author supports his theoretical approach with mathematical models to comprehensively argue the problem out and therefore reaching valid conclusions.
The most interesting part of the article
The most interesting aspect of this article is the procedure that the author follows in making the reader understand the topic. As such, the author first indicates the statement of intent and therefore, the reader is able to know where the argument is heading to. In addition to this, the author defines the important aspects as well as concepts pertaining to dependency path.
In providing the support for his discussion, the author consults literatures relating to the topic. Another interesting aspect of the article is that it uses viable economic methodologies to reach worthwhile findings and increasing authenticity.
Reference
Liebowitz, S. J (2000). Path Dependence, Lock-in, and History. Journal of Economic Perspectives, American Economic Association, 8(2), 1-9.