No. 186 · Strategy · Economics
Lock-in
Today’s convenient choice can become tomorrow’s trap when leaving costs too much.
In the Almanac
“The gauge war”, 1835–1892 · “John Deere”, 2010s
Both stories in full, three ways to use it and where it misleads.
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Questions
What is Lock-in?
Lock-in happens when you become so dependent on a product, standard or supplier that leaving costs too much in money, time, data or compatibility, even when something better exists.
How do you use Lock-in?
Before you commit to a tool, contract or platform, ask how you would get out. Review your subscriptions regularly, prefer open formats, and question whether you stay by choice or by inertia. And flip it around: make your good habits the ones that are hard to quit.
When does Lock-in matter?
Lock-in is one of the 56 mental models for strategy, the situations where you ask: How do I win when others want the same thing? Within that, it belongs to “Winning customers”, alongside Adverse Selection, Apostle Model and Churn.
What is an example of Lock-in?
Two stories show it at work: The gauge war (1835–1892) and John Deere (2010s). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Lock-in?
Switching Costs, Hysteresis and Preserving Optionality. Lock-in itself comes from economics.