Path Dependence in Decision-Making Processes: Exploring the Impact of Complexity under Increasing Returns
By Jochen Koch, Martin Eisend, A. Petermann. 2009
58 citations recorded by the source corpus.
The development of path-dependent processes basically refers to positive feedback in terms of increasing returns as the main driving forces of such processes. Furthermore, path dependence can be affected by context factors, such as different degrees of complexity. Up to now, it has been unclear whether and how different settings of complexity impact path-dependent processes and the probability of lock-in. In this paper we investigate the relationship between environmental complexity and path dependence by means of an experimental study. By focusing on the mode of information load and decision quality in chronological sequences, the study explores the impact of complexity on decision-making processes. The results contribute to both the development of path-dependence theory and a better understanding of decision-making behavior under conditions of positive feedback. Since previous path research has mostly applied qualitative case-study research and (to a minor part) simulations, this paper makes a further contribution by establishing an experimental approach for research on path dependence.
Subfields: Economics and Econometrics, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/b0141f75dfb1411da6628d12171f7428a2dc443a
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In Economics and Econometrics
In Management Science and Operations Research
Citations in the corpus
- Breaking New Paths: Theory and Method in Path Dependence Research (2013, background): “The former tests the tendency of probands in a controlled experiment “to neglect future developments at the expense of information on present situations” (Koch et al. 2009, 79). In their experiment, Koch et al. manipulate the complexity of a fictitious decision environment in a mobile service settin”