Path dependence is part of neo-liberal theory and posits that, once created, institutions become resistant to change and locked-in a set of incentives for human behaviour.

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Path dependence is a concept in economics and political science that explains how the set of decisions one faces for any given circumstance is limited by the decisions one has made in the past, even though past circumstances may no longer be relevant. It is not specifically part of neo-liberal theory, but rather a broader concept that can apply to various theories and contexts regarding how institutions and technologies evolve over time.

Path Dependence Is Part of Neo-Liberal Theory and Posits That