Positive feedback in the context of "Stock market crash"

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👉 Positive feedback in the context of Stock market crash

A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles.

A stock market crash is a social phenomenon where external economic events combine with crowd psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices (a bull market) and excessive economic optimism, a market where price–earnings ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants. Other aspects such as wars, large corporate hacks, changes in federal laws and regulations, and natural disasters within economically productive areas may also influence a significant decline in the stock market value of a wide range of stocks. Stock prices for corporations competing against the affected corporations may rise despite the crash.

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Positive feedback in the context of Laughter

Laughter is a typically pleasant physical reaction and emotion consisting usually of rhythmical, usually audible contractions of the diaphragm and other parts of the respiratory system. It is a response to certain external or internal stimuli. Laughter can rise from such activities as being tickled, or from humorous stories, imagery, videos or thoughts. Most commonly, it is considered an auditory expression of a number of positive emotional states, such as joy, mirth, happiness or relief. On some occasions, however, it may be caused by contrary emotional states such as embarrassment, surprise, or confusion such as nervous laughter or courtesy laugh. Age, gender, education, language and culture are all indicators as to whether a person will experience laughter in a given situation. Other than humans, some other species of primate (chimpanzees, gorillas and orangutans) show laughter-like vocalizations in response to physical contact such as wrestling, play chasing or tickling.

Laughter is a part of human behavior regulated by the brain, helping humans clarify their intentions in social interaction and providing an emotional context to conversations. Laughter is used as a signal for being part of a group—it signals acceptance and positive interactions with others. Laughter is sometimes seen as contagious and the laughter of one person can itself provoke laughter from others as a positive feedback.

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Positive feedback in the context of Audio feedback

Audio feedback (also known as acoustic feedback, howlround in the UK, or simply as feedback) is a positive feedback situation that may occur when an acoustic path exists between an audio output (for example, a loudspeaker) and its audio input (for example, a microphone or guitar pickup). In this example, a signal received by the microphone is amplified and passed out of the loudspeaker. The sound from the loudspeaker can then be received by the microphone again, amplified further, and then passed out through the loudspeaker again. The frequency of the resulting howl is determined by resonance frequencies in the microphone, amplifier, and loudspeaker, the acoustics of the room, the directional pick-up and emission patterns of the microphone and loudspeaker, and the distance between them. The principles of audio feedback were first discovered by Danish scientist Søren Absalon Larsen, hence it is also known as the Larsen effect.

Feedback is almost always considered undesirable when it occurs with a singer's or public speaker's microphone at an event using a sound reinforcement system or PA system. Audio engineers typically use directional microphones with cardioid pickup patterns and various electronic devices, such as equalizers and, since the 1990s, automatic feedback suppressors, to prevent feedback, which detracts from the audience's enjoyment of the event and may damage equipment or hearing.

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Positive feedback in the context of Self-organizing

Self-organization, also called spontaneous order in the social sciences, is a process where some form of overall order arises from local interactions between parts of an initially disordered system. The process can be spontaneous when sufficient energy is available, not needing control by any external agent. It is often triggered by seemingly random fluctuations, amplified by positive feedback. The resulting organization is wholly decentralized, distributed over all the components of the system. As such, the organization is typically robust and able to survive or self-repair substantial perturbation. Chaos theory discusses self-organization in terms of islands of predictability in a sea of chaotic unpredictability.

Self-organization occurs in many physical, chemical, biological, robotic, and cognitive systems. Examples of self-organization include crystallization, thermal convection of fluids, chemical oscillation, animal swarming, neural circuits, and black markets.

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Positive feedback in the context of Negative feedback

Negative feedback (or balancing feedback) occurs when some function of the output of a system, process, or mechanism is fed back in a manner that tends to reduce the fluctuations in the output, whether caused by changes in the input or by other disturbances.

Whereas positive feedback tends to instability via exponential growth, oscillation or chaotic behavior, negative feedback generally promotes stability. Negative feedback tends to promote a settling to equilibrium, and reduces the effects of perturbations. Negative feedback loops in which just the right amount of correction is applied with optimum timing, can be very stable, accurate, and responsive.

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Positive feedback in the context of Sexual selection

Sexual selection is a mechanism of evolution in which members of one sex choose mates of the other sex to mate with (intersexual selection), and compete with members of the same sex for access to members of the opposite sex (intrasexual selection). These two forms of selection mean that some individuals have greater reproductive success than others within a population, for example because they are more attractive or prefer more attractive partners to produce offspring. Successful males benefit from frequent mating and monopolizing access to one or more fertile females. Females can maximise the return on the energy they invest in reproduction by selecting and mating with the best males.

The concept was first articulated by Charles Darwin who wrote of a "second agency" other than natural selection, in which competition between mate candidates could lead to speciation. The theory was given a mathematical basis by Ronald Fisher in the early 20th century. Sexual selection can lead males to extreme efforts to demonstrate their fitness to be chosen by females, producing sexual dimorphism in secondary sexual characteristics, such as the ornate plumage of birds-of-paradise and peafowl, or the antlers of deer. Depending on the species, these rules can be reversed. This is caused by a positive feedback mechanism known as a Fisherian runaway, where the passing-on of the desire for a trait in one sex is as important as having the trait in the other sex in producing the runaway effect. Although the sexy son hypothesis indicates that females would prefer male offspring, Fisher's principle explains why the sex ratio is most often 1:1. Sexual selection is widely distributed in the animal kingdom, and is also found in plants and fungi.

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Positive feedback in the context of Climate change feedbacks

Climate change feedbacks are natural processes that impact how much global temperatures will increase for a given amount of greenhouse gas emissions. Positive feedbacks amplify global warming while negative feedbacks diminish it. Feedbacks influence both the amount of greenhouse gases in the atmosphere and the amount of temperature change that happens in response. While emissions are the forcing that causes climate change, feedbacks combine to control climate sensitivity to that forcing.

While the overall sum of feedbacks is negative, it is becoming less negative as greenhouse gas emissions continue. This means that warming is slower than it would be in the absence of feedbacks, but that warming will accelerate if emissions continue at current levels. Net feedbacks will stay negative largely because of increased thermal radiation as the planet warms, which is an effect that is several times larger than any other singular feedback. Accordingly, anthropogenic climate change alone cannot cause a runaway greenhouse effect.

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Positive feedback in the context of Thermal runaway

Thermal runaway describes a process that is accelerated by increased temperature, in turn releasing energy that further increases temperature. Thermal runaway occurs in situations where an increase in temperature changes the conditions in a way that causes a further increase in temperature, often leading to a destructive result. It is a kind of uncontrolled positive feedback.

In chemistry (and chemical engineering), thermal runaway is associated with strongly exothermic reactions that are accelerated by temperature rise. In electrical engineering, thermal runaway is typically associated with increased current flow and power dissipation. Thermal runaway can occur in civil engineering, notably when the heat released by large amounts of curing concrete is not controlled. In astrophysics, runaway nuclear fusion reactions in stars can lead to nova and several types of supernova explosions, and also occur as a less dramatic event in the normal evolution of solar-mass stars, the "helium flash".

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Positive feedback in the context of Self-fulfilling prophecy

A self-fulfilling prophecy is a prediction that comes true at least in part as a result of a person's belief or expectation that the prediction would come true. In the phenomena, people tend to act the way they have been expected to in order to make the expectations come true. Self-fulfilling prophecies are an example of the more general phenomenon of positive feedback loops. A self-fulfilling prophecy can have either negative or positive outcomes. Merely applying a label to someone or something can affect the perception of the person/thing and create a self-fulfilling prophecy. Interpersonal communication plays a significant role in establishing these phenomena as well as impacting the labeling process.

American sociologists W. I. Thomas and Dorothy Swaine Thomas were the first Western scholars to investigate this phenomenon. In 1928, they developed the Thomas theorem (also known as the Thomas dictum): "If men define situations as real, they are real in their consequences." Another American sociologist, Robert K. Merton, continued the research, and is credited with coining the term "self-fulfilling prophecy" and popularizing the idea that "a belief or expectation, correct or incorrect, could bring about a desired or expected outcome." The works of philosophers Karl Popper and Alan Gewirth also contributed to the idea.

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