I'm reading Meadows book on Systems Thinking and I'm trying to make sure I understand feedback loops. From my understanding, balancing feedback loops keep the stock at the same level, while reinforcing loops reinforces the direction of change (so more input into the stock if more is there).
As an example: say the stock is money in your account and thus the flow in and out is money going in/leaving the account.
Would a reinforcing look loop then be earning interest? While a balancing loop (on the input side) be doing your own oil change? I think the latter can't be a balancing loop since we aren't keeping the stock at the same level, so would it simply be flow into the system--ie because you are not paying someone to do it (and thus just an input?).
I'm confused!
Systems Thinking Question: Balancing v. Reinforcing loops
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jacob
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Re: Systems Thinking Question: Balancing v. Reinforcing loops
Yes, earning interest would be an example of a reinforcing loop: money ->(+) interest ->(+) more money (positive feedback)
Outsourcing/insourcing e.g. oil changes would be an example of a balancing loop: money out of balance ->(-) DIY oil change ->(+) money closer to desired balance. (negative feedback) So what happens is that if you have too much money your DIY efforts will decrease and you'll spend more more money, this reduces your stock of money and you now have a balance closer to what you want. Conversely, if you have too little money, you increase DIY efforts and save money, this increases your balance.
That is, presuming you had to get the oil changed anyway. Perhaps it's the "spaving" that's confusing (e.g. saving money by spending money)?
Outsourcing/insourcing e.g. oil changes would be an example of a balancing loop: money out of balance ->(-) DIY oil change ->(+) money closer to desired balance. (negative feedback) So what happens is that if you have too much money your DIY efforts will decrease and you'll spend more more money, this reduces your stock of money and you now have a balance closer to what you want. Conversely, if you have too little money, you increase DIY efforts and save money, this increases your balance.
That is, presuming you had to get the oil changed anyway. Perhaps it's the "spaving" that's confusing (e.g. saving money by spending money)?
Re: Systems Thinking Question: Balancing v. Reinforcing loops
Thanks Jacob. My second read of ERE spurred this systems thinking quest. Meadows doesn't seem to touch on the idea of synergy you write in your book (i.e. That the best solution solves several problems and interacts with several systems).
I'm getting the sense that the opposite is true an effect in one system can lead to bad consequences in others (like buying say product X, which the requires more hours at work, and less time with family: so three systems are affected: money/bank, work, and family)
I'm getting the sense that the opposite is true an effect in one system can lead to bad consequences in others (like buying say product X, which the requires more hours at work, and less time with family: so three systems are affected: money/bank, work, and family)