How Economists think about Incentives鈥攁nd why poorly designed Systems can make Rational People produce Irrational Outcomes | Perverse Incentives, Goodhart鈥檚 Law, Public Choice Theory, Rational Ignorance, and Mechanism Design all reveal the same uncomfortable idea: sometimes the problem isn鈥檛 the people playing the game鈥攊t鈥檚 what the game rewards. #Economics #PerverseIncentives #GoodhartsLaw #PublicChoiceTheory #MechanismDesign #PoliticalScience #LearnOnTikTok
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