Business I / Social Change and Environment
Practice question · Multiple choice

Ride-hailing apps ran for years under taxi rules written before smartphones existed. Ogburn had a name for that. What is the mechanism?

Hints
  1. Which changed faster: the technology or the rulebook?
  2. Ask why nobody had written a rule about it, rather than who benefited from the gap.
Show the answer

C. Cultural lag: technology changes faster than laws and norms

Why

Rules are written in response to a world that has already moved, so the gap is structural rather than anyone's failure, and firms that live in it are exploiting a timing property of institutions. Option 2 describes a later stage, once incumbents notice and lobby.

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