The Lock-In Effect

The Lock-In Effect occurs when consumers or organizations become heavily dependent on a specific technology, platform, or supplier, making it difficult or costly to switch to alternatives. This dependence often results from investments in compatible equipment, learning costs, or contractual obligations. As a consequence, users remain with the current choice, even if better options become available, because changing would involve significant time, expense, or inconvenience. This effect can influence market dynamics, giving established providers more power and potentially limiting innovation or competition.