Or: Supply and demand oscillate in a delayed way based on each other. A quick increase or decrease in one side takes time to ripple, and by the time it does, th

Or: Supply and demand oscillate in a delayed way based on each other. A quick increase or decrease in one side takes time to ripple, and by the time it does, the organization may have reversed course. An airline overbooks flights. Lots of people get their flights cancelled. Takes six months for the fallout to settle where everyone who got burned booked their future flights on a different airline. 3 months out the airline has to cut the number of flights and cut prices in the face of falling revenue to reclaim market share. As soon as they do that, they're flooded with too many bookings. So they take the bookings and overbook flights again, but it takes time to bring the new flights online. It's not a 1:1 situation. Each time you miss the market you wobble a little further until all the inefficiencies of bad predictions eat you up.