Abstract: In association with path dependence, researchers often
talk of institutional “lock-in", thereby indicating that far-reaching
path deviation or path departure are to be regarded as exceptional
cases. This article submits the alleged general inclination for stability
of path-dependent processes to a critical review. The different
reasons for path dependence found in the literature indicate that
different continuity-ensuring mechanisms are at work when people
talk about path dependence (“increasing returns", complementarity,
sequences etc.). As these mechanisms are susceptible to fundamental
change in different ways and to different degrees, the path
dependence concept alone is of only limited explanatory value. It is
therefore indispensable to identify the underlying continuity-ensuring
mechanism as well if a statement-s empirical value is to go beyond
the trivial, always true “history matters".
Abstract: This paper argues that networks, such as the ECN and the American network, are affected by certain small events which are inherent to path dependence and preclude the full evolution towards efficiency. It is advocated that the American network is superior to the ECN in many respects due to its greater flexibility and longer history. This stems in particular from the creation of the American network, which was based on a small number of cases. Such a structure encourages further changes and modifications which are not necessarily radical. The ECN, by contrast, was established by legislative action, which explains its rigid structure and resistance to change. This paper is an attempt to transpose the superiority of the American network on to the ECN. It looks at concepts such as judicial cooperation, harmonisation of procedure, peer review and regulatory impact assessments (RIAs), and dispute resolution procedures.