A standard which came to the market first, such as the QWERTY letter layout in typewriters, can become entrenched (this layout is still used in computer keyboards today). What is this phenomenon called?
A) network externalities
B) path dependency
C) sunk cost
D) comparative advantage

Question

Quizplus · Accepted Answer

Path dependency refers to the tendency for an early decision or technology to become entrenched and continue to be used even when better options are available. The QWERTY keyboard layout is a classic example of path dependency. Network externalities refer to the phenomenon where the value of a product or service increases as more people use it, sunk cost is a cost that has already been incurred and cannot be recovered, and comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country.

A Standard Which Came to the Market First, Such as the QWERTY