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Exponential decay

A behavior mode that occurs when the rate of increase or decrease in a variable (usually a stock) is proportional to how far the stock is from its equilibrium, so as to slow down its rate of change. As the stock gets larger (smaller), its increase (decrease) occurs progressively more slowly. The speed of increase or decrease can be described by half‐life. The corresponding structure is associated with negative feedback and tends to generate goal‐seeking behavior.

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