Summary
Feedback occurs when outputs of a system are routed back as inputs as part of a chain of cause-and-effect that forms a circuit or loop. The system can then be said to feed back into itself. The notion of cause-and-effect has to be handled carefully when applied to feedback systems: Simple causal reasoning about a feedback system is difficult because the first system influences the second and second system influences the first, leading to a circular argument. This makes reasoning based upon cause and effect tricky, and it is necessary to analyze the system as a whole. As provided by Webster, feedback in business is the transmission of evaluative or corrective information about an action, event, or process to the original or controlling source. Self-regulating mechanisms have existed since antiquity, and the idea of feedback had started to enter economic theory in Britain by the 18th century, but it was not at that time recognized as a universal abstraction and so did not have a name. The first ever known artificial feedback device was a float valve, for maintaining water at a constant level, invented in 270 BC in Alexandria, Egypt. This device illustrated the principle of feedback: a low water level opens the valve, the rising water then provides feedback into the system, closing the valve when the required level is reached. This then reoccurs in a circular fashion as the water level fluctuates. Centrifugal governors were used to regulate the distance and pressure between millstones in windmills since the 17th century. In 1788, James Watt designed his first centrifugal governor following a suggestion from his business partner Matthew Boulton, for use in the steam engines of their production. Early steam engines employed a purely reciprocating motion, and were used for pumping water – an application that could tolerate variations in the working speed, but the use of steam engines for other applications called for more precise control of the speed. In 1868, James Clerk Maxwell wrote a famous paper, "On governors", that is widely considered a classic in feedback control theory.
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