Path Dependence

Path dependence is a decision-making approach based on past behaviors and experiences, often maintaining the status quo. It is influenced by factors like ease of information access and financial implications. While useful, it can lead to cognitive bias if it prevents recognizing current conditions and new information. Understanding path dependence helps in identifying its impact on decision-making processes.

How can path dependence lead to cognitive bias in decision-making?

What is the significance of understanding historical precedents in decision-making?