A Feedback Loop is a mechanism in which the output of a system feeds back to influence its input. Feedback loops are the central mechanism through which systems either reinforce or stabilize themselves. Understanding them is the foundation for any grasp of system dynamics — whether in markets, organizations, or technical systems.
There are two basic types. Reinforcing loops generate exponential growth or exponential decline: more users on a platform create more content, more content attracts more users — a self-reinforcing cycle. Balancing loops stabilize the system: a thermostat measures the temperature and reduces heating when the target value is reached. Most real systems consist of a network of reinforcing and balancing loops that influence each other.
The concept traces back to Norbert Wiener and cybernetics. In practice, thinking in feedback loops helps anticipate unintended consequences of interventions: every change in a system triggers feedback effects that can either amplify or undermine the intended outcome.
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