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The Incentives Lab
HBT-INC-0143 · Dimension INC · Incentives

Hallucination

Confident outputs that are factually wrong.

Trust·AI-Behavioral Coupling·Grade C·draft· enriching…

Scientific Definition

Confident outputs that are factually wrong.

Plain-English Definition

Confident outputs that are factually wrong.

Feynman Explanation

Confidence and accuracy are different variables. Models can max either.

Core Principle

Confident outputs that are factually wrong.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

Pending editorial review.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Pending editorial review.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

Confidence and accuracy are different variables. Models can max either.

Examples

Everyday
  • LLMs inventing citations, case law, or factual claims.
Modern (Organizational)
  • Major source of enterprise AI risk.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Retrieval grounding. Citation requirements. User training.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
C (A strongest → E speculative)
Replication
★★☆☆☆
Intervention Confidence
3 / 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
Major source of enterprise AI risk.
Amplifying Incentives
Major source of enterprise AI risk.
Org Failure Modes
Major source of enterprise AI risk.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Retrieval grounding. Citation requirements. User training.
Diagnostic Questions
  • Retrieval grounding. Citation requirements. User training.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Retrieval grounding. Citation requirements. User training.
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-0143 · INC
Hallucination
HaAnAnthropomorphismACAutomation ComplacencyCIConfidence Intervals…TCTrust CalibrationAUAcceptable Use Polic…ACAdoption Curve (AI)AgAgentALAgentic LiabilityAAAI as Coach vs. AI a…AAAI Audit Trail

Knowledge Graph Neighbors

Version History

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