Reinforcing feedback loops are mechanisms that occur when a change in a system is amplified, causing additional change in the same direction. They are found whenever a stock has the capacity to reproduce itself or grow as a constant fraction of itself. For example, the more customers leave positive feedback about a company, the more people will try it and leave more feedback. Over time, the stock – in this case, customer satisfaction – will reproduce on its own.
How do you avoid wasted time, money, and resources from short-sighted decisions? When you think in s...
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