System Dynamics

Feedback:
- Positive Feedback Drives Growth
- Negative Feedback Limits Growth
- Multiple Feedback Processes Create Complex Behaviors



Value:
- Simulation models offer a means to make assumptions explicit and testable
- Simulation models offer a mechanism to explain the causes behind observed behavior
- Simulation offers a means to explore uncertainty in assumptions and bound likely future behavior
- Simulation offers a means to explore business behavior and gain insight into how the firm/industry/market is likely to change and under what timeframe