Life can often be utterly unpredictable. You do something right and you could not only be rewarded for it, but the reward itself could provide you with further opportunities to enrich yourself.

On the other hand, if you do something bad, you might not only get punished for it, but the aftereffects of the punishment could make your situation worse and cause you to get stuck in a loop of negativity and adversity.

Such chain reactions, in which the product of the reaction itself furthers the reaction, are said to be autocatalytic in nature.

What is Autocatalysis?

Autocatalysis is a chemical reaction in which the product of the reaction also acts as a catalyst for the next cycle of the reaction or for another, identical reaction. The process becomes cyclical – two or more entities react with each other to create a product, which stimulates the entities to react with each other again, which results in the birth of the product, and so on.

While no process can go on forever, an autocatalytic reaction yields better results and higher outputs during its course than regular reactions.

How Does It Work?

A well-made marketing campaign, which is personalized for a particular target customer base, is a good example of an autocatalytic process. The campaign works as intended, which results in more people buying the product, which brings in more money, a part of which is invested in the campaign again to retain existing customers and to find new customers.

Real Life Examples of Autocatalysis

A real-life example of autocatalysis is the evolution of the WWE (World Wrestling Entertainment), which is a professional wrestling organization. Up until the 70’s, there were several small professional wrestling organizations in the country, each confined to its own territory. When WWE came on to the scene, it became a national phenomenon because it was available on cable TV and on pay-per-view as well.

The company did not invent the concept of syndicated television or pay-per-view. Nor did it change its product in any way. It simply made use of the existing technology to market its product to a nationwide audience, rather than confining itself to a small territory like its competitors did.

The revenue from the pay-per-view events and television deals allowed the company to grow bigger and put on more events, which further increased its revenue and helped it become the billion dollar corporation it is today.

The 2008 banking crisis is also an example of autocatalysis, albeit in a negative way. Charlie Munger of the controversial Berkshire Hathaway says that while banking crises are not new to our country, the Frank/Greenspan 2008 crisis was autocatalytic in nature, wherein lax regulations allowed financial institutions to lend money to high-risk groups indiscriminately, pushing them towards a point-of-no-return, similar to what Germany underwent in the 1920’s, until the government stepped in and bailed everyone out.

Understanding and Applying Autocatalysis

Autocatalysis, in its essence, is a mental model which could be applied in real life to get better results. A good example is a promotional article or video that you share with your friends on social media. Your friends share it with their friends and they share it with theirs.

Also, the people who visit your or any of your friends’ social media page are also likely to share it with their friends, whom you might not even know. It results in your promotional message going viral, with very little effort on your part, as a result of which you witness a substantial increase in sales and revenue, a part of which could be invested in creating more promotional material.

Autocatalysis need not always be about money or profits. For example, being empathetic and treating people with kindness can have its own rewards. You treat someone kindly and they treat you the same way.

Now, you both feel good, as a result of which you are more communicative, more considerate, and more receptive while talking to others. It sets off a chain reaction in which all the parties involved feel better, understand each other’s viewpoints, and create stronger connections, both within their social groups as well as with those outside of it.

At the same time, it would be wrong to rely on autocatalysis alone to solve your problems and further your life goals. You need to have a variety of mental models, so that you can view each problem or opportunity from different perspectives, understand it clearly, and make an informed decision, which increases your chances of succeeding considerably.