The Incentives Lab
Forthcoming · A book by Ricardo Rosselló & Aaron Bare

The Perverse Incentive.

Every system gets the results it rewards. A diagnosis of the hidden architecture inside healthcare, pharma, food, Wall Street, media, and governance — and the methodology to flip it.
The Book

Something is quietly wrong with every system we depend on. Not broken in obvious ways. Just drifting — slowly, steadily rewarding behavior that undermines the purpose it was designed to serve.

The hospital is paid to treat disease, not prevent it. The drug company is paid to maintain patents, not cure patients. The insurance company is paid to deny claims, not cover them. Political campaigns are funded by donors and PACs, not citizens. The food system is paid by the calorie, not the nutrition. Wall Street is paid by the quarter, not the decade. The school is paid by the test score, not the education.

And psilocybin — a compound that grows wild on six continents, used by indigenous healers for 9,000 years, with the most promising clinical results for depression and addiction in modern psychiatry — was Schedule I for 50 years. Not because it didn't work. Because no one could own it, and a cure has no recurring revenue.

None of the people running these systems are villains. Most are trying. But the systems reward the wrong things — and behavior follows rewards, not intentions.

This book is about that invisible force. It has a name. Once you see it, you cannot unsee it.

The Three Laws

The mechanics every chapter rests on.

Goodhart's Law
Charles Goodhart, 1975

When a measure becomes a target, it ceases to be a good measure.

Campbell's Law
Donald Campbell, 1976

The more any quantitative social indicator is used for social decision-making, the more apt it is to distort and corrupt the processes it was meant to monitor.

The Cobra Effect
Delhi, British Raj

Incentives designed to solve a problem end up rewarding people for making it worse. Bounties for dead cobras produced bred cobras and a worse infestation.

The scale of the problem

These are not failures of effort. They are outputs of incentive architecture, operating exactly as designed.

$14,885
U.S. healthcare spend per person — nearly double Switzerland, worst outcomes in the high-income world.
Peterson-KFF, 2024
450,000
Americans dead from opioids, 1999–2018 — an epidemic manufactured by a per-script sales bonus.
CDC
77%
Global employees disengaged — $8.9 trillion lost output, 9% of global GDP.
Gallup, 2024
$942.5B
S&P 500 stock buybacks in 2024 — capital not invested in R&D or workers.
S&P Dow Jones
56%
Of U.S. adult calories come from federally subsidized commodity crops; 0.4% of subsidies go to fruits and vegetables.
CDC / Emory; Meatonomics
50 yrs
Psilocybin shelved as Schedule I — not because it didn't work, but because no one could own it.
Controlled Substances Act, 1970
The Three Layers

Human. Organizational. Institutional.

Every perverse incentive lives in one of three layers. Each layer is grounded in its own science and its own philosophical lineage. The book moves through all three.

Biology & Behavior
Human Systems
Science

Evolutionary psychology (Tooby & Cosmides) · behavioral economics (Kahneman, Thaler) · neuroscience of reward (Schultz, Berridge) · stress biology (Sapolsky) · psychedelic neuroscience (Carhart-Harris)

Philosophy

Aristotle on habit · Seneca on attention · Spinoza on conatus · Frankl on meaning · Marcus Aurelius on the examined life

Culture & Metrics
Organizational Systems
Science

Kegan & Lahey · Jensen & Meckling · Senge · Prosci, Kotter · Bare's Exponential Theory

Philosophy

Drucker · Deming · Dewey · Arendt on the banality of institutional evil

Policy & Governance
Institutional Systems
Science

Buchanan & Tullock · Acemoglu & Robinson · Douglass North · Stigler · Thaler & Sunstein

Philosophy

Machiavelli · Tocqueville · Rawls · Montesquieu · Rousseau

Full Chapter Architecture

17 chapters. One arc. From invisible force to field guide.

Chapter
Intro
The Invisible Force

Names the force. Introduces Goodhart, Campbell, and the Cobra Effect. States the thesis: you are not failing — the system rewarding you is.

Chapter
01
The Ancestral Operating System

Eight evolved traits — and the $100B+ industry engineered to exploit each one.

Chapter
02
When Good Intentions Go Wrong

The five-stage lifecycle of every perverse incentive. Atlanta schools. Wells Fargo. The Soviet nail factory.

Chapter
03
The Anatomy of a Perverse Incentive

Leverage asymmetry, regulatory capture, and why abuse outcompetes accountability when systems aren't designed to prevent it.

Chapter
04
The Complexity Problem

The world updates daily. Incentive structures update on a decade. The design gap is the alpha.

Chapter
05
The Healthcare Trap

Five perverse incentives inside the most expensive system in the world: fee-for-service, consolidation, denial-as-revenue, treatment over prevention, pharmaceutical pricing.

Chapter
06
The Drug Machine

Patent evergreening, pay-for-delay, marketing over R&D, disease maintenance over cure — and the opioid crisis as the definitive case study.

Chapter
07
The Psilocybin Mirror

The most suppressed therapeutic of the 20th century. Not suppressed because it failed — suppressed because no one could own it. What happens when there is no perverse incentive, and how the old system is moving in.

Chapter
08
Subsidizing Sickness

Agricultural policy, ultra-processed food, and the metabolic-disease loop the U.S. government funds on both sides.

Chapter
09
Wall Street and the Quarterly Clock

Earnings cycles, buybacks, and executive comp tied to stock price — the redesign of capital allocation around the next 90 days.

Chapter
10
Human Systems · Hacking the Hardware

Attention, threat, and social comparison as biological systems modern environments are engineered to exploit.

Chapter
11
Human Systems · Rewriting the Software

Neuroplasticity, identity-based habit change, and the science behind a deliberate personal reward redesign.

Chapter
12
Organizational Systems · Culture as Reward

Hidden competing commitments. The Deliberately Developmental Organization. Why 70% of engagement variance is the manager.

Chapter
13
Organizational Systems · The Flip in Practice

Audit and redesign at organizational scale. The dual-metric model. Why 70% of change initiatives fail — and the 3× higher success rate when reward structures change with them.

Chapter
14
Institutional Systems · When the System Is the Problem

Path dependence, regulatory capture, and the Reformer's Dilemma — diagnosed from the inside of a governor's office.

Chapter
15
Institutional Systems · The Radical Middle

Why the left–right binary is itself a perverse incentive. Shared outcomes beat shared identity.

Chapter
16
The Flip · A Field Guide

Four steps. Identify. Diagnose. Design. Implement. Applied to systems at every layer.

Chapter
17
Systems That Reward What Matters

Three portraits of aligned incentive structures — the deliberate life, the DDO, the inclusive institution. Alignment, not perfection.

Chapter
Epilogue
The Proof

Rosselló returns to his story — not as confession, but as demonstration. The hardware reset, the software rewrite, the cloudware rebuild — and the 53,823 write-in ballots that followed.

Nine free chapter previews are already live. Start with Chapter 01 →

Epilogue · The Proof

His story is not the curriculum. It is the proof.

Rosselló names the specific perverse incentives he was running inside the Governor's office: sleep deprivation as status; inner-circle loyalty over institutional truth; media engagement over governing outcomes; the Telegram chat as every mechanism in the book running simultaneously.

The psilocybin experience: the moment the default mode network went quiet enough to see the reward structure he had been running. The science of Chapter 7 and the phenomenology meet in a single page.

The hardware reset. The software rewrite. The cloudware rebuild — purpose, community, institutional trust.

The write-in election: 53,823 people wrote his name onto ballots. Without a campaign. Without a party. Because something had actually changed — and people could tell.

If the system that produced the fall can be diagnosed, designed, and flipped — then the thesis is not theory. It is lived.

Forthcoming

The Perverse Incentive.

A book by Ricardo Rosselló and Aaron Bare. Prepared by Syzygy Studio. For early access, speaking inquiries, and translation rights, write to us.