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How historical decisions constrain future choices, often locking in suboptimal outcomes. IRSA's research on Why Institutions Forget and Institutional Memory shows that path dependence operates through knowledge loss—institutions forget why paths were chosen, making change difficult. Preserving institutional memory can break harmful path dependence.
A city's road layout reflects medieval patterns despite modern inefficiency. IRSA research shows the issue isn't just physical infrastructure but lost knowledge of why decisions were made—recovering that knowledge enables architectural change.
See: Institutional Memory, Why Institutions Forget