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The Incentives Lab
HBT-INC-0177 · Dimension INC · Incentives

Misaligned Incentive Culture

When rewards don't match stated values, culture quietly decays toward what is rewarded.

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

Scientific Definition

When rewards don't match stated values, culture quietly decays toward what is rewarded.

Plain-English Definition

When rewards don't match stated values, culture quietly decays toward what is rewarded.

Feynman Explanation

Culture is the average of what you tolerate and what you pay.

Core Principle

When rewards don't match stated values, culture quietly decays toward what is rewarded.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

When rewards don't match stated values, culture quietly decays toward what is rewarded.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Comp design predicts culture better than handbooks.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Culture is the average of what you tolerate and what you pay.

Examples

Everyday
  • Ethics-statement firms with sales-only comp.
Modern (Organizational)
  • Comp design predicts culture better than handbooks.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Comp-values alignment audits. Behavioral promotion criteria.

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
Comp design predicts culture better than handbooks.
Amplifying Incentives
Comp design predicts culture better than handbooks.
Org Failure Modes
Comp design predicts culture better than handbooks.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Comp-values alignment audits. Behavioral promotion criteria.
Diagnostic Questions
  • Comp-values alignment audits. Behavioral promotion criteria.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Comp-values alignment audits. Behavioral promotion criteria.
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-0177 · INC
Misaligned Incentive Culture
MIAPAnnual Performance R…CLCampbell's LawCOCharity Overhead TrapCOCharity Overhead Tra…CECobra EffectEMEfficiency MonocultureFLFederal Land Exchang…GLGoodhart's LawHDHyper-Specialization…LOLocal-Optimum Optimi…

Knowledge Graph Neighbors

Version History

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