Increasing Returns and Path Dependence in the Economy

by W. Brian Arthur

This book brings together Professor Arthurs pioneering article and provide a comprehensive presentation of his exciting vision of an economics that incorporates increasing returns. After a decade of resistance from economists, these ideas are now being widely discussed and adopted, as Kenneth Arrow recounts in his foreword. In fundamental ways they are changing our views of the working economy.

Genres: Economics, Business, Science

201 pages, ebook

First published December 15, 1994

About the author

William Brian Arthur is an economist credited with developing the modern approach to increasing returns. He has lived and worked in Northern California for many years. He is an authority on economics in relation to complexity theory, technology and financial markets.

Reviews

[Pradeep · Rating 5 out of 5]

If you like Economics, Mathematics and want to understand how societies function, you should read this book

[Dennis · Rating 4 out of 5]

A fascinating book composed of a series of white papers focused on Path Dependence. Certain papers were much more interesting than others, with the dull pages being skipped over entirely. Complex but thoroughly enjoyable, I would recommend this to anyone who has a deeper interest in the dismal science and unexpected outcomes.

[Matt Watkinson · Rating 3 out of 5]

Colour me a systems dynamics geek, but few concepts in commerce and economics fascinate me like path dependence and increasing returns. A dense, impenetrable, but strangely rewarding read, I do not recommend this for anyone other than the most committed student of the topics.

[Ben · Rating 3 out of 5]

Interesting and important premise, but pretty repetitive. The information contagion discussion and strategic price setting are the main two things not covered in the intro essay.

[Jim · Rating 5 out of 5]

Incredible how few people have read this book versus the value contained in it. Increasing returns and path dependence are both important mental models for investors to keep in mind.