Friday, June 24, 2011 @3:40 PM
Path-dependency, which is a term used to describe how our past choices affect current and future choices is neither good nor bad; it is simply a reflection of reality and of people's limited rationality.
We do certain things not because they are evidently the right thing to do, but because they are what we have always done.
What appears to us to be an eminently sensible course of action is often the manifestation of our subjective preferences, aversions and biases accumulated over several years, rather than the result of a rational weighing of costs and benefits, of risks and opportunities.