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Economics

Path Dependence in Institutional Development and Critical Junctures

Quick fact

The classic standard for railway track gauge—4 feet 8.5 inches—is a textbook example of path dependence: it was the width of ancient Roman chariot wheels and now determines the gauge of nearly 60% of the world's rail lines, despite being an arbitrary historical accident.

Why this is interesting

Have you ever wondered why a country can persist with a seemingly inefficient railway gauge or a two-party system for centuries—even when better options exist? The answer lies in path dependence, a force that locks in some choices and makes change extremely difficult.