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The diagram consists of a set of words and arrows. Causal loop diagrams are accompanied by a narrative which describes the causally closed situation the CLD describes. Closed loops, or causal feedback loops, in the diagram are very important features of CLDs because they may help identify non-obvious vicious circles and virtuous circles.
Causal loop diagram of a model examining the growth or decline of a life insurance company. [15] The figure above is a causal loop diagram of a system dynamics model created to examine forces that may be responsible for the growth or decline of life insurance companies in the United Kingdom. A number of this figure's features are worth mentioning.
Fig. 1: Causal loop diagram. In system dynamics this is described by a circles of causality (Fig. 1) as a system consisting of two feedback loops. One is the balancing feedback loop B1 of the corrective action, the second is the reinforcing feedback loop R2 of the unintended consequences. These influence the problem with a delay and therefore ...
A causal loop diagram of growth and underinvestment The growth and underinvestment archetype is one of the common system archetype patterns defined as part of the system dynamics discipline. System dynamics is an approach which strives to understand, describe and optimize nonlinear behaviors of complex systems over time, using tools such as ...
A system archetype is a pattern of behavior of a system.Systems expressed by circles of causality have therefore similar structure.Identifying a system archetype and finding the leverage enables efficient changes in a system.
Cybernetics is the transdisciplinary study of circular causal [1] processes such as feedback and recursion, where the effects of a system's actions (its outputs) return as inputs to that system, influencing subsequent action. [2]
Judea Pearl defines a causal model as an ordered triple ,, , where U is a set of exogenous variables whose values are determined by factors outside the model; V is a set of endogenous variables whose values are determined by factors within the model; and E is a set of structural equations that express the value of each endogenous variable as a function of the values of the other variables in U ...
The causal loop diagram below shows escalation archetype as a single reinforcing loop. It can be read simply as that more action done by X creates bigger results of action done by X. The bigger results of X, the bigger difference between X and Y results. The bigger difference means more action by Y and more action by Y leads to bigger result of Y.