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Negative feedback in markets often brings stability to a dynamical system and there is reason that there are negative feedback loops in markets. A popular mode
by dimitar 15y ago
Negative feedback in markets often brings stability to a dynamical system and there is reason that there are negative feedback loops in markets.
A popular model of a negative feedback relationship in markets is called the 'Demand curve'.
- JonnieCache 15y agoCan this still be said when we're considering the economy of a whole country, or the whole world?
- jacques_chester 15y agoBoth. Trade exists across invisible lines, even when the owners of the invisible lines forcibly try to prevent them.
- fanf2 15y agoThere is also positive feedback in markets due to irrational exuberance and herd behaviour.