What is a defining characteristic of a reinforcing loop?

A reinforcing loop is characterized by its ability to generate exponential growth or collapse due to the positive feedback mechanism inherent in such systems. In a reinforcing loop, any change or growth in a particular direction is amplified, leading to an acceleration of that trend. For example, in a business context, an increase in customer satisfaction may lead to more referrals, which in turn increases sales, potentially leading to further increases in customer satisfaction—creating a cycle of growth that can escalate rapidly.

This characteristic involves feedback that enhances the existing condition, whether that condition is positive (growth) or negative (collapse). For instance, if a product gains popularity, the increasing demand could lead to more production, more marketing, and additional customer acquisition, thus amplifying its success. Conversely, if a negative trend starts, such as declining market interest, the reinforcing loop might lead to further declines as resources are pulled away, exacerbating the situation.

Overall, the defining characteristic of a reinforcing loop is its potential for rapid change, either in the form of growth or decline, influenced by the feedback it generates.