Runaway Co-evolution
Cold War nuclear arsenals escalated to tens of thousands of warheads far beyond rational deterrent requirements.
Arms races that escalate to extremes, producing traits far beyond what's optimal in isolation. Sexual selection creates runaway dynamics: female mate preferences select for exaggerated male traits, creating positive feedback (Fisher's runaway selection, 1930). Peacock tails exemplify this - escalation continues until counterbalanced by survival costs. Tree height in forests also exemplifies runaway: competitive escalation for light drives heights far beyond optimal if trees didn't compete.
Business Application of Runaway Co-evolution
Runaway dynamics in business occur when individually rational escalation produces collectively irrational outcomes - a Prisoner's Dilemma where all parties would be better off cooperating but can't stop competing. Cold War nuclear arsenals escalated to tens of thousands of warheads far beyond rational deterrent requirements.