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A self-fulfilling prophecy is the sociopsychological phenomenon of someone "predicting" or expecting something, and this "prediction" or expectation coming true simply because the person believes it will and the person's resulting behaviors align to fulfill the belief.

This suggests that people's beliefs influence their actions. The principle behind this phenomenon is that people create consequences regarding people or events, based on previous knowledge of the subject.

There are three factors within an environment that can come together to influence the likelihood of a self-fulfilling prophecy becoming a reality. These would be appearance, perception and belief. When a phenomenon cannot be seen, appearance is what we rely upon when a self-fulfilling prophecy is in place. When it comes to a self-fulfilling prophecy there also must be a distinction “between 'brute and institutional' facts”. The philosopher John Searle states the difference as “facts [that] exist independently of any human institutions; institutional facts can only exist within institutions”

There is an inability of institutional facts to be self-fulfilling. For example, the old belief that the Earth is flat (institutional) when it is known to be spherical (brute) is not self-fulfilling. There has to be a consensus by “large numbers of people within a given population” aside from being institutional, social, or bound by the laws of nature for an idea to be seen as self-fulfilling.

A self-fulfilling prophecy can have either negative or positive outcomes. It can be concluded that establishing a label towards someone or something significantly impacts their perception and influences them to establish self-fulfilling prophecy. Interpersonal communication plays a significant role in establishing these phenomena as well as impacting the labeling process. Intrapersonal communication can have both positive and negative effects, dependent on the nature of the self-fulfilling prophecy.

A self-fulfilling prophecy has been considered an inherently false conception based on the way Merton defines self fulfilling, which makes it a restrictive theory due to the fact that it must be a false idea from the start in order for the resulting outcome to have proved the initial thought to be true.

The expectations of a relationship or the inferiority complex felt by young minority children are examples of the negative effects of real false beliefs being self-fulfilling.

American sociologist W. I. Thomas was the first to discover this phenomenon. In 1928 he developed the Thomas theorem (also known as the Thomas dictum), stating that,

If men define situations as real, they are real in their consequences.

In other words, the consequence will come to fruition based on how one interprets the situation. Because of the way the Thomas’ defined a self-fulfilling prophecy it can be regarded as relatively flexible and can apply to many things such as culture. On a societal level, there can be a consensus on what's deemed true depending on the importance of the part of the culture even if it is a false assumption and as a result of this perception of the culture it will become the outcome based on the behavior of the society. A person’s perception can be “self-creating” if the belief they have is acted upon by their behavior which aligns with the outcome.

Building on Thomas' idea, another American sociologist, Robert K. Merton, used the term "self-fulfilling prophecy" for it, popularizing the idea that “a belief or expectation, correct or incorrect, could bring about a desired or expected outcome.” While Robert K. Merton is typically credited for this theory since he coined the name, The Thomas’s developed it earlier on along with the philosophers Karl Popper and Alan Gerwith who also independently contributed to the idea behind this theory in their works which came before Merton as well. Self-fulfilling prophecies are an example of the more general phenomenon of positive feedback loops.

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