How Goodhart's Law Breaks Metrics
When a measure becomes a target, it ceases to be a good measure. People optimize for metrics, not goals, creating distortion and gaming.
February 2026
Economic Laws Explained Simply
Diminishing returns means more input yields less output over time. Supply and demand set prices. Opportunity cost is the next best alternative foregone.
August 2025
Alignment Problems in Organizations
Organizational alignment problems: unclear strategy where teams don't know priorities, misaligned incentives rewarding wrong behaviors, conflicting goals.
July 2025
Incentive Design Failures Explained
Soviet nail factory paid by weight produced useless heavy nails. Cobra breeding bounty in India increased cobras. Metrics drive unintended gaming.
June 2025
How Incentives Shape Outcomes
Incentives direct attention and effort toward rewarded behaviors. They signal importance and create competition. Misaligned incentives cause dysfunction.
How Metrics Influence Behavior
Metrics create visibility making performance transparent. Accountability follows visibility. They enable improvement but encourage gaming the measures.
Step-by-Step: Analyzing Incentive Structures
Map what's rewarded with bonuses and recognition. Identify what's punished with penalties and criticism. Compare stated versus actual incentives.
October 2024
What Is the Cobra Effect: When Solutions Make Problems Worse
The cobra effect occurs when an incentive designed to fix a problem makes it worse. Learn the origin story, Goodhart's Law connection, and how to design better incentives.
November 2022
What Is Moral Hazard: When Protection Creates Risk
Moral hazard occurs when protection from consequences encourages riskier behavior. Learn its origins, real-world examples, and how to design incentives that prevent it.
July 2022
What Is the Cobra Effect in Education: When Incentives Destroy Learning
Education incentives often backfire. Learn how teaching to the test, grade inflation, and teacher performance pay undermine learning — and what actually works instead.