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Systems & Incentives · 8

Card 1 of 8: Goodhart's Law

Canonical · Systems & Incentives

Goodhart's Law

Any metric that starts as a rough proxy for something you care about degrades once you tie rewards to it. People optimize for the number, not the thing. Test scores, LOC written, closed tickets, likes — all Goodhart-vulnerable.

Charles Goodhart · 1975 swipe · next
Canonical · Systems & Incentives

Chesterton's Fence

You encounter a rule, a process, or a fence in a field with no obvious purpose. The naive move is to remove it. Chesterton's rule: first understand why it's there, and only then decide whether it's safe to remove.

G. K. Chesterton · 1929
Canonical · Systems & Incentives

Principal–Agent Problem

A principal hires an agent to act on their behalf — shareholders hire executives, homeowners hire contractors, citizens elect officials. The agent has more information and different incentives, so their decisions systematically diverge from what the principal would choose. Every institution runs on layers of this.

Michael Jensen & William Meckling · 1976
Contemporary · Systems & Incentives

Cobra Effect

The British in colonial Delhi paid a bounty for dead cobras to reduce cobra populations. People started breeding cobras. When the government cancelled the program, the breeders released their now-worthless snakes — and the cobra population increased. The name stuck.

Horst Siebert · 2001
Contemporary · Systems & Incentives

Choice Architecture

If you run a school cafeteria, the order in which you arrange the food determines what the kids will eat. If the apples are at eye level and the cake is hidden in the back, the kids will eat more apples. The cafeteria director is a 'Choice Architect.'

Richard Thaler · 2008
Contemporary · Systems & Incentives

Sludge

A 'Nudge' makes it easier for you to make a good decision (like automatically enrolling you in a retirement plan). 'Sludge' makes it intentionally difficult for you to do something (like a 15-page form required to apply for financial aid, or having to call a phone number during business hours to cancel a digital subscription).

Cass Sunstein · 2018
Contemporary · Systems & Incentives

The French Garden and the English Garden

Versailles was designed on paper before anyone visited the site — its geometry imposed on the land, the land's own contours flattened to fit. The English landscape tradition did the opposite: walk the ground first, then ask what it's already trying to become.

Will Manidis · 2026
Speculative · Systems & Incentives

Friendship as Negative ROI

128 to 192 hours to build one meaningful friendship from scratch, a roughly 70% chance it fails within two years anyway, versus investing that same time in friendships that already cleared that bar.

Pankaj (the2ndfloorguy) · 2026