Sweden's 1967 Switch to Right-Hand Traffic

Stable Equilibrium

Unstable Equilibrium

For generations, all commuters in a city have used the 'North Bridge' to cross a river, leaving the identical 'South Bridge' almost empty. There is no toll, law, or physical barrier that prevents using the South Bridge. Which statement best analyzes why this traffic pattern is a self-perpetuating state?

Market Adoption Failure

Social Conventions as Equilibrium

In a community, two new, equally effective but incompatible messaging apps, 'ConnectApp' and 'TalkNow,' are introduced. After an initial period of mixed usage, nearly everyone adopts 'ConnectApp,' and 'TalkNow' falls into disuse. Which of the following statements provides the most robust evaluation of why the widespread adoption of 'ConnectApp' represents a self-perpetuating equilibrium?

Consider a town where, by long-standing custom, all shops close on Wednesdays. There is no law requiring this closure. This situation is not a true self-perpetuating equilibrium because any single shop owner could gain a significant advantage by choosing to stay open.

Evaluating the Stability of Social and Technical States

Each of the following describes a stable or recurring situation. Which one of these is LEAST likely to be considered a self-perpetuating equilibrium?

Match each scenario with the statement that best describes the nature of its stability.

A community has long used a standard, but inefficient, technology. A new, more efficient but incompatible technology is introduced. Arrange the following events in the logical order that describes the transition from the old, stable state to a new one.

The Persistence of an Inefficient Standard