I had that wrong but the rest of what I said was apparently more accurate
http://www.autotap.com/techlibrary/u...en_sensors.asp
The computer uses the oxygen sensor's input to regulate the fuel mixture, which is referred to as the fuel "feedback control loop." The computer takes its cues from the O2 sensor and responds by changing the fuel mixture. This produces a corresponding change in the O2 sensor reading. This is referred to as "closed loop" operation because the computer is using the O2 sensor's input to regulate the fuel mixture. The result is a constant flip-flop back and forth from rich to lean which allows the catalytic converter to operate at peak efficiency while keeping the average overall fuel mixture in proper balance to minimize emissions. It's a complicated setup but it works.
When no signal is received from the O2 sensor, as is the case when a cold engine is first started (or the 02 sensor fails), the computer orders a fixed (unchanging) rich fuel mixture. This is referred to as "open loop" operation because no input is used from the O2 sensor to regulate the fuel mixture. If the engine fails to go into closed loop when the O2 sensor reaches operating temperature, or drops out of closed loop because the O2 sensor's signal is lost, the engine will run too rich causing an increase in fuel consumption and emissions.
A bad coolant sensor can also prevent the system from going into closed loop because the computer also considers engine coolant temperature when deciding whether or not to go into closed loop.