Bounded growth is when a growth rate is constantly decreasing. The result is that growth approaches a fixed value. In other words, when your growth rate is constantly decreasing it eventually becomes so small that you're essentially sitting still. Technically you may forever approach a bound without ever touching it.
ExampleA startup company with 100 million in sales and a 100% growth rate initially looks like it might achieve exponential growth. However, with each quarter its growth rate falls by 50%. As a result the company never reaches 500 million in revenue as its growth rate becomes extremely small with time: 
Growth Rate  Revenue  100%  100 Million  50%  200 Million  25%  300 Million  12.5%  375 Million  6.25%  421 Million  3.13%  448 Million  1.56%  462 Million  0.78%  469 Million  0.39%  472 Million  Bounded growth is reasonably common as big things tend to have trouble growing, a phenomena known as Diseconomies Of Scale. It is common for a period of exponential growth to be followed by either bounded growth or a period of decline.
Type   Definition  A growth rate that is constantly decreasing meaning that results approach an upward bound that is never passed.  Related Concepts  
Thinking
This is the complete list of articles we have written about thinking.
If you enjoyed this page, please consider bookmarking Simplicable.
© 20102023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
