{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Curiosity Chronicle","title":"The 6 Principles of Incentive Design","html":"<iframe width=\"100%\" height=\"180\" frameborder=\"no\" scrolling=\"no\" seamless src=\"https://share.transistor.fm/e/dcfc1cad\"></iframe>","width":"100%","height":180,"duration":859,"description":"Episode at a glance:Incentives are a powerful and ubiquitous force. \"Show me the incentive and I will show you the outcome\" - Charlie Munger. Thoughtfully-designed incentives are likely to create wonderful outcomes. Poorly-designed incentives are likely to create terrible outcomes.Goodhart's Law says that when a measure becomes a target, it ceases to be a good measure. Because of Goodhart's Law, incentive systems often suffer from unintended consequences.Poorly-designed incentives typically exhibit the McNamara Fallacy (what can't be measured isn't important), a narrow focus (missing the forest for the trees), or an obsession with vanity metrics (what looks impressive versus what actually matters).The 6 principles to consider in crafting thoughtful incentives: (1) Objectives, (2) Metrics, (3) Anti-Metrics, (4) Stakes & Effects, (5) Skin in the Game, and (6) Clarity & Fluidity.","thumbnail_url":"https://img.transistorcdn.com/4nO1oo__jWE5MpZsRfwEO_6q4py16kwv8WwJybce4FA/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzMxOTcwLzE2NzEx/MzU5MDctYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}