People respond to incentives; policy must align rewards with desired behavior.
Founder — edit Incentives shape behavior
Edit this beliefI believe that incentives shape behavior, and good systems align incentives with virtue. A society that rewards cheating will not remain benevolent.
- Confidence
- High
- What could disprove it
- Show that incentive structures consistently matter less than rhetoric in determining social outcomes.
- Current support
People respond to what is rewarded and punished, not only to speeches.
Perverse incentives corrupt medicine, education, politics, and business alike.
Sample: Soviet nail factory anecdote (targets by weight vs count) — classic illustration of Goodhart's Law and perverse incentives.
- Supporting resources
- Studies, data, books, and references that help express and test this belief.
- ArticleGoodhart's Law (explainer) ↗
When a measure becomes a target, it ceases to be a good measure — perverse incentives corrupt systems.
Behavioral economics documents how incentive structures predictably shape choices.
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