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 said prediction would 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 Gerwith also contributed to the idea.
An early precursor of the concept appears in Edward Gibbon's Decline and Fall of the Roman Empire: "During many ages, the prediction, as it is usual, contributed to its own accomplishment".
The phrase "self-fulfilling prophesy" was coined by Robert K. Merton, a sociologist who also developed the ideas of anomie, social structure, and the modes of individual adaption. In his book Social Theory and Social Structure, he uses the example of a bank run to show how self-fulfilling thoughts can make unwanted situations happen. In his illustration, rumors spread about the town that the local bank is going to file for bankruptcy, causing many people to rush to the bank and close their accounts. Because banks do not keep their total assets in cash, the bank was unable to fulfill all its customers' withdrawals, which eventually caused the bank to go bankrupt.