Pfadabhängigkeit, Institutionen und Regelreform

In this work, Rolf Ackermann deals with the far-reaching methodological and the politico-economic questions raised by the phenomenon of path dependency. He shows that it is almost impossible for a state to know ex ante what the right path is. On the other hand, it seems obvious that cases of 'evolutionary failure' can occur, which then might make it expedient for state or collective action to correct the mistakes ex post. The author analyzes three causes of institutional inflexibility caused by path dependence: coordination effects, complementarity effects and the self-reinforcing effects of the traditional ways of thinking or 'mental models' in society. He shows that the probability of successful institutional reforms increases if these causes are properly diagnosed, illustrating this with the example of the transformation of formerly socialist countries.