Discussion and conclusion
Given that the responder’s countermove is aimed at redressing the equilibrium upset by the initial move, it is useful to think of iterative lagged asymmetric responses as negative (balancing) feedback loops constitutive of the system that includes the initiator–responder pair (Richardson, 1999). Interestingly, computer simulations that implement the principles of systems dynamics have revealed that systems underpinned by lagged negative feedback loops very often display wild, destabilizing, and unexpected oscillatory behaviors, such as cycles of boom and bust in real estate, commodity prices, or financial markets (Borshchev and Filippov, 2004; Calvert and Simandan, 2010; Sterman, 2000). These phenomena occur (a) when actors engage in excessive restorative actions because they fail to take into account the long time it takes for those restorative actions to bear fruit (Rahmandad et al., 2009) and (b) when various actors do not properly evaluate what the other actors are doing (e.g. they may overestimate their competitors, underestimate them, or ignore them altogether; Elster, 2007).