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The Incentives Lab
Mental Models · Social

Circle of Empathy

Who do you count as fully human, deserving consideration?

"Moral progress is mostly the slow expansion of this circle."

Quick answer

What is Circle of Empathy? Who do you count as fully human, deserving consideration? Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.

In the wild

Peter Singer's expanding circle: family → tribe → nation → species → future generations → non-human.

Why it matters in the room

Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.

Counter-move

Quarterly: who's currently outside your circle whose welfare your decisions are affecting?

Visual · Pattern
Circle of Empathy — a recurring shape in how people decide.
Live example · Apply Circle of Empathy

Use the model. Pick the move.

Who do you count as fully human, deserving consideration? You've just seen this: Peter Singer's expanding circle: family → tribe → nation → species → future generations → non-human. Which lever does the model recommend?

● Live

Pick a lever. There are no neutral ones — every incentive funds a behavior somewhere.

How does this land?

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Human Behavior Element™ · HBE Spec

The full taxonomy entry

Every concept in the Atlas uses the same structure — so Circle of Empathy can be compared, recombined, and cited like an element on a periodic table.

About the standard →
M
CO
HBT-M3971
Official name
Circle of Empathy
Mental Models · Social
Identity
HBT ID
HBT-M3971
Symbol
CO
Official name
Circle of Empathy
Synonyms
Social
Keywords
Mental Models, Social, human behavior, incentive design
Version
v1.0
Last updated
Maintained by The Incentives Lab
Classification
Kingdom
Cognition
Domain
Frameworks
Family
Mental Model
Class
Social
Element
Circle of Empathy
Definition
Scientific
Who do you count as fully human, deserving consideration?
Plain-English
Who do you count as fully human, deserving consideration?
Feynman
Moral progress is mostly the slow expansion of this circle.
Core principle
Who do you count as fully human, deserving consideration?
One-sentence summary
Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.
Mechanisms
Psychological
Who do you count as fully human, deserving consideration?
Behavioral econ.
Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.
Neurological
Reward, threat, and salience circuits bias attention toward the cue.
Evolutionary
Heuristics that paid off in ancestral environments now misfire in modern systems.
Sociological
Group norms and status incentives reinforce the pattern across a team.
Computational
Models trained on biased human signals will replicate and amplify the pattern.
Systems thinking
Feedback loops between metrics, incentives, and behavior lock the pattern in place.
Signals & signature
Inputs (activators)
Peter Singer's expanding circle: family → tribe → nation → species → future generations → non-human.
Outputs (observable)
Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.
Behavioral signature
You see Circle of Empathy when the explanation for a decision sounds reasonable but the outcome keeps repeating.
Behavioral molecules
Often combines with related Atlas entries — see the rail below.
Pathways · before
A goal, metric, or contract clause makes the behavior rational locally.
Pathways · after
Locally rational choices accumulate into a systemic distortion.
Domains where it shows up
  • Business
  • Leadership
  • Government
  • Healthcare
  • Education
  • Sales
  • Marketing
  • AI
  • Negotiation
  • Media
  • Public Policy
  • Relationships
Examples
Everyday
Peter Singer's expanding circle: family → tribe → nation → species → future generations → non-human.
Modern
Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.
Historical
A pattern repeatedly documented since the foundational behavioral science literature on mental model.
Famous experiments
See the References block — primary papers in the Atlas link out to the original studies.
Design principles
How to leverage
Stakeholder theory and ESG are operationally an expansion of who's inside the corporate circle.
How to reduce
Quarterly: who's currently outside your circle whose welfare your decisions are affecting?
How to redesign
Quarterly: who's currently outside your circle whose welfare your decisions are affecting?
The Perverse Incentive Lens™
How it's exploited
Organizations weaponize circle of empathy — sometimes deliberately, often by accident — when metrics reward the symptom rather than the outcome.
Common perverse incentives
Volume metrics, short review windows, bonus cliffs, and contracts that pay on activity rather than impact.
Failure modes
When Circle of Empathy dominates, teams optimize for the dashboard while the real outcome quietly degrades.
Incentive redesign
Quarterly: who's currently outside your circle whose welfare your decisions are affecting?
Ethical considerations
Don't engineer circle of empathy into customers, employees, or citizens as a manipulation tactic — design for informed choice instead.
Diagnostic questions
  • Where in our org would Circle of Empathy most often show up unnoticed?
  • Which metric, ritual, or contract clause quietly rewards Circle of Empathy?
  • If we removed every payoff for Circle of Empathy, what behavior would replace it?
  • Who benefits when Circle of Empathy persists — and who pays the cost?
Organizational warning signs
Metrics
A KPI is hit while the underlying outcome stalls or worsens.
Behaviors
People route around the rule rather than challenge it.
Language
'That's just how we do it here.' / 'The system requires it.'
Culture
Naming the pattern is treated as disloyalty.
Red flags
  • People defend the status quo using the language of circle of empathy.
  • Decisions cluster around the easiest narrative rather than the strongest evidence.
  • New data changes the slide deck but not the decision.
  • Anyone naming the pattern is treated as the problem.
Intervention playbook
Immediate
Make the perverse payoff visible to the people creating it.
30-day
Run a small pilot that pays for the outcome, not the proxy.
Long-term
Rewrite the comp plan, contract, or ritual so the right behavior becomes the easy behavior.
AI considerations
Detect
Audit training data and reward signals for the same pattern this element describes.
Avoid amplifying
Don't optimize models on metrics that already encode the perverse incentive.
Counteract
Use the model to surface where the pattern is most active, then redesign the incentive — not the model.
Measurement
Metrics
Outcome-to-proxy ratio over time.
Assessment
The Incentives Lab III Diagnostic.
Survey
Calibrated pulse questions on rules vs. outcomes.
Behavioral signals
Where people work around the system.
Observational
Where the dashboard and the lived experience disagree.
Scientific evidence
Evidence grade
Synthesized from the behavioral science literature; see Atlas references.
Replication
Tracked in the Atlas as primary, replicated, or contested.
Intervention confidence
Moderate — patterns generalize, mechanisms vary by context.
Research consensus
Broad agreement on the pattern; ongoing debate on boundary conditions.
Known limitations
Local context, culture, and incentive structure all change the strength of the effect.
Open questions
How does Circle of Empathy interact with AI-mediated decisions at scale?
References
Meta-analyses
Tracked in the Atlas registry.
Seminal authors
Kahneman, Tversky, Thaler, Ariely, Cialdini, Ostrom, Simon — and the field they built.
Cross references

Every Atlas entry is a node in a knowledge graph. See the related rail below to follow the connections.

Disciplinary layers

See Circle of Empathy through 3 lenses

Each layer of the Incentives OS reframes this concept with its own thinkers, vocabulary, and diagnostic question.

Test yourself · 60 seconds

Do you actually know Circle of Empathy?

Three quick questions. Result is saved into your review streak — come back when the term is due to lock it in.

Question 1 of 3Score: 0/3

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Go deeper

Worked example, counter-example & concept map

On-demand AI analysis grounded in the Lab's research. Cached on your device after first run.

How this lands in you

Your nervous system has a region for this.

Primary region
Default Mode Network

When you encounter Circle of Empathy, your default mode network folds the experience into your ongoing story-of-self — which is why the same fact lands differently depending on who you think you are.

Self-referential thought, mind-wandering, narrative-of-self, mental time travel. Most of your waking thought is this network running scenarios about you, your status, your past, and your future.

See Default Mode in the Brain Atlas →
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More definitions to follow

Every term in the Atlas connects to a dozen others. Pick any of these and see where it takes you.

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Sources & key excerpts

  1. [1]
    Mental Model Master List
    Michael Simmons · Section: Ethics & Stakeholders
    "Draw the boundary of who counts in your decision. Most cruelty isn't malice — it's a circle drawn too small."
    Underlying researchPeter Singer, The Expanding Circle (1981)
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