Path dependency is a conceptual framework used to explain how the set of decisions one faces for any given circumstance is limited by the decisions one has made in the past, even though past circumstances may no longer be relevant. In socio-economic analysis, this principle posits that historical events, particularly early, contingent ones, can establish a trajectory that becomes increasingly difficult to alter over time. The entrenchment of a particular path is not necessarily due to its inherent superiority but is often the result of positive feedback mechanisms, which reinforce the initial choice. For instance, initial investments in a specific technology or institutional arrangement create economies of scale and network effects, making alternatives progressively less viable. This process can lead to what is known as 'lock-in,' where a society or an economy becomes committed to a sub-optimal outcome simply because the costs of switching to a superior alternative have become prohibitively high. The QWERTY keyboard layout is frequently cited as a classic, albeit contested, example of this phenomenon. Consequently, understanding path dependency is crucial for analyzing macro-level phenomena, as it demonstrates that a system's long-term development is not a straightforward progression towards maximal efficiency. Instead, it is profoundly shaped by its initial conditions and the self-reinforcing dynamics that follow, a concept closely related to institutional inertia, which describes the inherent resistance of established structures to fundamental change.