Negative feedback loop
Also said as Rubber banding, Catch-up mechanic, Balancing loop
A loop that pulls the leader back or lifts whoever is behind, so that the contest stays close. Negative here means it dampens, not that it is bad.
It keeps everyone in the game and the ending in doubt. Too strong, and being ahead means nothing, so playing well stops feeling as if it does anything.
Say it
“Races are over by the second lap. Add rubber banding: give karts in last place a 5% speed boost, shrinking to nothing as they reach the middle of the pack.”
Where you’ve seen it
Mario Kart hands the best items to whoever is at the back, and since Mario Kart 64 a spiny blue shell hunts down the player in first place.
Not to be confused with positive feedback loop
A negative loop shrinks a lead. A positive loop grows it. Most good games use both, with one for each stage of the match.