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The Incentives Lab
HBT-INC-0172 · Dimension INC · Incentives

Local-Optimum Optimization

Greedy improvement loops climb hills that aren't the highest hill.

Universal Pattern Perverse Pattern·Perverse Incentive·Grade C·draft· enriching…

Scientific Definition

Greedy improvement loops climb hills that aren't the highest hill.

Plain-English Definition

Greedy improvement loops climb hills that aren't the highest hill.

Feynman Explanation

You can be the best at the wrong thing.

Core Principle

Greedy improvement loops climb hills that aren't the highest hill.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Greedy improvement loops climb hills that aren't the highest hill.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Local-greedy beats global-aware in most orgs.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

You can be the best at the wrong thing.

Examples

Everyday
  • Org units optimizing functional KPIs against system goals.
Modern (Organizational)
  • Local-greedy beats global-aware in most orgs.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • System-level metrics. Cross-unit accountability.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
C (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
4 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
Local-greedy beats global-aware in most orgs.
Amplifying Incentives
Local-greedy beats global-aware in most orgs.
Org Failure Modes
Local-greedy beats global-aware in most orgs.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
System-level metrics. Cross-unit accountability.
Diagnostic Questions
  • System-level metrics. Cross-unit accountability.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
System-level metrics. Cross-unit accountability.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-INC-0172 · INC
Local-Optimum Optimization
LOAPAnnual Performance R…CLCampbell's LawCOCharity Overhead TrapCOCharity Overhead Tra…CECobra EffectEMEfficiency MonocultureFLFederal Land Exchang…GLGoodhart's LawHDHyper-Specialization…MIMisaligned Incentive…

Knowledge Graph Neighbors

Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.