Thinking in Systems: International Bestseller

Seeing how individual decisions are rational within the bounds of the information available does not provide an excuse for narrow-minded behavior. It provides an understanding of why that behavior arises. Within the bounds of what a person in that part of the system can see and know, the behavior is reasonable. Taking out one individual from a posi

the goal is the direction-setter of the system, the definer of discrepancies that require action, the indicator of compliance, failure, or success toward which balancing feedback loops work. If the goal is defined badly, if it doesn’t measure what it’s supposed to measure, if it doesn’t reflect the real welfare of the system, then the system can’t

Systems often have the property of self-organization—the ability to structure themselves, to create new structure, to learn, diversify, and complexify. Even complex forms of self-organization may arise from relatively simple organizing rules—or may not.

A system* is an interconnected set of elements that is coherently organized in a way that achieves something. If you look at that definition closely for a minute, you can see that a system must consist of three kinds of things: elements, interconnections, and a function or purpose.

If a government proclaims its interest in protecting the environment but allocates little money or effort toward that goal, environmental protection is not, in fact, the government’s purpose. Purposes are deduced from behavior, not from rhetoric or stated goals.

Many of the interconnections in systems operate through the flow of information. Information holds systems together and plays a great role in determining how they operate.

THINK ABOUT THIS: If A causes B, is it possible that B also causes A?

THE TRAP: ESCALATION When the state of one stock is determined by trying to surpass the state of another stock—and vice versa—then there is a reinforcing feedback loop carrying the system into an arms race, a wealth race, a smear campaign, escalating loudness, escalating violence. The escalation is exponential and can lead to extremes surprisingly

Model utility depends not on whether its driving scenarios are realistic (since no one can know that for sure), but on whether it responds with a realistic pattern of behavior.

Stocks generally change slowly, even when the flows into or out of them change suddenly. Therefore, stocks act as delays or buffers or shock absorbers in systems.