4 ms·
Tail whip effect
by lobocinza 5y ago
Tail whip effect
- xxgreg 5y agohmmm interesting - here's an article. https://qz.com/2004569/the-global-chip-shortage-can-be-explained-by-the-bullwhip-effect/ https://qz.com/2004569/the-global-chip-shortage-can-be-expla...
- lobocinza 5y agoOh, true! English is not my main language. I meant bullwhip effect, not tail whip (pokémon move). ;)
- visarga 5y agoAn interesting failure mode of free markets. Inherent instability.
- namaria 5y agoAny system with signalling delay will experience this effect. Changes will get amplified across layers. That's also a common way to die from a viral infection: your immune system goes into overdrive from too many signals of infection from different tissue cells. A common treatment is steroids, which dampen immune response.
- lobocinza 5y agoIs an inherent instability in any system with long/slow information chains. It's more a failure mode of central planning than of free markets. We had a few companies making bad decisions based on bad demand forecasting. This is a problem mitigated by stock exchanges (commodities).