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Why might government intervention make sense in a model of path-dependency but not a supply/demand model? LO2 

   Why might government intervention make sense in a model of path-dependency but not a supply/demand model? LO2
Macroeconomics
Macroeconomics
David Colander 8th Edition
Chapter 6, Problem 11 ↓

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Path-dependency in economics refers to situations where 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. This can result in inefficient  Show more…

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Why might government intervention make sense in a model of path-dependency but not a supply/demand model? LO2
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