Reinforcing and Balancing Loops
To determine if a causal loop is reinforcing or balancing, one can start with an assumption, e.g. "Node 1 increases" and follow the loop around. The loop is:
- reinforcing if, after going around the loop, one ends up with the same result as the initial assumption.
- balancing if the result contradicts the initial assumption.
Or to put it in other words:
- reinforcing loops have an even number of negative links (zero also is even, see example above)
- balancing loops have an uneven number of negative links.
Identifying reinforcing and balancing loops is an important step for identifying Reference Behaviour Patterns, i.e. possible dynamic behaviours of the system.
- Reinforcing loops are associated with exponential increases/decreases.
- Balancing loops are associated with reaching a plateau.
If the system has delays (often denoted by drawing a short line across the causal link), the system might fluctuate.
Read more about this topic: Causal Loop Diagram
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—Mason Cooley (b. 1927)