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The Incentives Lab
Perverse Incentives · Government

Use-Based Infrastructure Funding

Funding tied to traffic counts rewards expansion over unglamorous maintenance.

"Build it bigger. Let it rot quieter."

Quick answer

What is Use-Based Infrastructure Funding? Funding tied to traffic counts rewards expansion over unglamorous maintenance. Funding formulas pre-decide infrastructure outcomes.

In the wild

Crumbling bridges adjacent to brand-new interchanges.

Why it matters in the room

Funding formulas pre-decide infrastructure outcomes.

Counter-move

State-of-good-repair funding floors.

Visual · Counter-loop
INTENDED GOALtargetACTUAL OUTCOMEgamed
Use-Based Infrastructure Funding routes effort away from the intended target.
Live example · Re-architect Use-Based Infrastructure Funding

Flip the incentive. Watch the side-effect move.

Funding tied to traffic counts rewards expansion over unglamorous maintenance. Caught in the wild: Crumbling bridges adjacent to brand-new interchanges.

● Live
What gets measured
Headline number the org is paid on
088100
What quietly moves with it
Quiet damage the proxy hides
074100

In the room: Funding formulas pre-decide infrastructure outcomes.

Counter-move from the Atlas: State-of-good-repair funding floors.

How does this land?

Pick a reaction to Use-Based Infrastructure Funding

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Human Behavior Element™ · HBE Spec

The full taxonomy entry

Every concept in the Atlas uses the same structure — so Use-Based Infrastructure Funding can be compared, recombined, and cited like an element on a periodic table.

About the standard →
P
UI
HBT-P2051
Official name
Use-Based Infrastructure Funding
Perverse Incentives · Government
Identity
HBT ID
HBT-P2051
Symbol
UI
Official name
Use-Based Infrastructure Funding
Synonyms
Government
Keywords
Perverse Incentives, Government, human behavior, incentive design
Version
v1.0
Last updated
Maintained by The Incentives Lab
Classification
Kingdom
Systems
Domain
Incentive Design
Family
Perverse Incentive
Class
Government
Element
Use-Based Infrastructure Funding
Definition
Scientific
Funding tied to traffic counts rewards expansion over unglamorous maintenance.
Plain-English
Funding tied to traffic counts rewards expansion over unglamorous maintenance.
Feynman
Build it bigger. Let it rot quieter.
Core principle
Funding tied to traffic counts rewards expansion over unglamorous maintenance.
One-sentence summary
Funding formulas pre-decide infrastructure outcomes.
Mechanisms
Psychological
Funding tied to traffic counts rewards expansion over unglamorous maintenance.
Behavioral econ.
Funding formulas pre-decide infrastructure outcomes.
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)
Crumbling bridges adjacent to brand-new interchanges.
Outputs (observable)
Funding formulas pre-decide infrastructure outcomes.
Behavioral signature
You see Use-Based Infrastructure Funding 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
Crumbling bridges adjacent to brand-new interchanges.
Modern
Funding formulas pre-decide infrastructure outcomes.
Historical
A pattern repeatedly documented since the foundational behavioral science literature on perverse incentive.
Famous experiments
See the References block — primary papers in the Atlas link out to the original studies.
Design principles
How to leverage
Funding formulas pre-decide infrastructure outcomes.
How to reduce
State-of-good-repair funding floors.
How to redesign
State-of-good-repair funding floors.
The Perverse Incentive Lens™
How it's exploited
Organizations weaponize use-based infrastructure funding — 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 Use-Based Infrastructure Funding dominates, teams optimize for the dashboard while the real outcome quietly degrades.
Incentive redesign
State-of-good-repair funding floors.
Ethical considerations
Don't engineer use-based infrastructure funding into customers, employees, or citizens as a manipulation tactic — design for informed choice instead.
Diagnostic questions
  • Where in our org would Use-Based Infrastructure Funding most often show up unnoticed?
  • Which metric, ritual, or contract clause quietly rewards Use-Based Infrastructure Funding?
  • If we removed every payoff for Use-Based Infrastructure Funding, what behavior would replace it?
  • Who benefits when Use-Based Infrastructure Funding 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 use-based infrastructure funding.
  • 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 Use-Based Infrastructure Funding 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 Use-Based Infrastructure Funding through 2 lenses

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

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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
Striatum & Nucleus Accumbens

When you encounter Use-Based Infrastructure Funding, your striatum has built a reward association — and the next time the cue appears, it will push you toward the behavior whether you decide to or not.

Reward learning, habit formation, anticipation, craving, action selection. Habits live here. So do addictions. Variable rewards train this circuit faster than fixed ones.

See Striatum in the Brain Atlas →
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