How Economists think about Incentives—and why poorly designed Systems can make Rational People produce Irrational Outcomes | Perverse Incentives, Goodhart’s Law, Public Choice Theory, Rational Ignorance, and Mechanism Design all reveal the same uncomfortable idea: sometimes the problem isn’t the people playing the game—it’s what the game rewards. #Economics #PerverseIncentives #GoodhartsLaw #PublicChoiceTheory #MechanismDesign #PoliticalScience #LearnOnTikTok
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How Economists think about Incentives—and why poorly designed Systems can make Rational People produce Irrational Outcomes | Perverse Incentives, Goodhart’s Law, Public Choice Theory, Rational Ignorance, and Mechanism Design all reveal the same uncomfortable idea: sometimes the problem isn’t the people playing the game—it’s what the game rewards. #Economics #PerverseIncentives #GoodhartsLaw #PublicChoiceTheory #MechanismDesign #PoliticalScience #LearnOnTikTok
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