Tag: Incentive Structures
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Tall Poppy Syndrome
Tall Poppy Syndrome, rooted in historical anecdotes, manifests as societal pushback against conspicuous success. It reflects deep-rooted tensions between individual accomplishment and collective conformity, gaining prominence in settings that emphasize social equality.
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Goodhart’s Law
Coined by Charles Goodhart, the principle “When a measure becomes a target, it ceases to be a good measure” highlights the unintended repercussions of emphasizing a singular metric. Originating from monetary policy observations, the principle reveals how entities adjust their behaviors in response to metrics becoming primary objectives across diverse sectors.
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Cui Bono
Derived from Roman legal traditions, “Cui Bono” translates as “To whom is it a benefit?”. Historically used to discern motives by pinpointing beneficiaries, it’s now a widely-used tool for navigating complex societal and economic dynamics.
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Principal-Agent Problem
The Principal-Agent Problem occurs when a person (the principal) hires someone else (the agent) to act for them, but the agent may not always act in the principal’s best interest due to differing information or motives. Solutions involve creating better incentives and transparency.