Market Signals is prices & info guide attention. It sits in the Cognition dimension (COG) of the Human Behavior Taxonomy™ as element HBT-COG-0717, within the Level 5 family. The core principle: prices & info guide attention. In incentive terms, it matters because it changes the payoff people perceive before they choose — which means it can be designed for, or exploited.
Scientific Definition
Prices & info guide attention
Plain-English Definition
Prices & info guide attention
Feynman Explanation
Prices & info guide attention
Core Principle
Prices & info guide attention
Mechanisms
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Inputs (Triggers)
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Outputs (Behaviors)
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Behavioral Signature
Prices & info guide attention
Examples
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Original analysis from The Incentives Lab — how this element behaves inside real payoff structures.
Why this element matters to incentive design
Executives usually notice this element only after it has cost something. By then it looks like a one-off. It is not. The mechanism underneath it operates in the Cognition dimension — how do we think?. You can recognize it in the field by its signature: prices & info guide attention. Every element in the Cognition dimension changes the perceived payoff of an action before the action happens, which is exactly where incentive design has leverage.
How it gets exploited
Left undesigned, this element is exploited the ordinary way: someone discovers that triggering it is cheaper than earning the outcome it stands in for. The pattern is the same one Goodhart's Law describes: the measurable proxy attracts the effort, and the purpose behind it quietly loses funding.
How the Lab designs around it
The redesign move is to make the desired behavior observable, remove whatever currently pays for its opposite, and attach the reward to the behavior rather than to the noisy outcome downstream of it. Treat it as infrastructure. Once you can see it in your own system, most of the argument about culture resolves itself.
Famous Experiments
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Design Principles
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Measurement Approaches
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Evidence
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The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
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Interactive Mini Network
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Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
Design shapes what's seen
Shapes what millions notice
What stands out captures attention
Filters what we engage with
Aligns attention toward a goal
Tech shapes our focus
We notice things selectively
Humanity learns together
Simplify complex team decisions
Belief systems shape decisions
We interpret through models
We imagine others' minds
Where Market Signals is cited in the corpus
Essays, field guides, and diagnostics from The Incentives Lab that apply this element.
- EssayGoodhart's Law in the Real World
How measurable proxies capture judgment.
- EssayThe Perverse Incentives Hiding in Your KPIs
Cognitive shortcuts turned into scorecards.
- ReferenceThe Periodic Table of Human Behavior
The full 1,267-element map this page belongs to.
- ReferenceThe incentive glossary
Definitions for every mental model, bias, and fallacy in the corpus.
Questions about Market Signals
- What is Market Signals?
- Market Signals is prices & info guide attention. It sits in the Cognition dimension (COG) of the Human Behavior Taxonomy™ as element HBT-COG-0717, within the Level 5 family. The core principle: prices & info guide attention. In incentive terms, it matters because it changes the payoff people perceive before they choose — which means it can be designed for, or exploited.
- How is Market Signals exploited?
- It is exploited when triggering the behavior becomes cheaper than producing the outcome the behavior is supposed to signal — the standard perverse-incentive path.
- How do you design around Market Signals?
- Name the behavior you want in observable terms, remove what currently pays for the opposite, attach the reward to the behavior rather than a lagging proxy, and publish how you will detect gaming.
- Which behavioral dimension does Market Signals belong to?
- Market Signals is classified in the Cognition dimension (COG) of the Human Behavior Taxonomy™, family "Level 5", class "Behavioral Force". Its permanent identifier is HBT-COG-0717 and its evidence grade is B.