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The Incentives Lab
For Government & Policy

Map the unintended consequences before they ship.

For federal, state, municipal, and multilateral teams designing programs, regulations, or policy. We red-team the second-order behavior your impact model is missing — and rewrite the rule so the right behavior is the easy one.

Why this work

Every well-intentioned rule is also a behavior-design system.

Goodhart's Law isn't an academic punchline. It's the operating reality of every program with a target attached to it. The moment a metric becomes a payment, an audit trigger, or a press number, the population in front of you starts optimizing it — often in ways the original policy memo never imagined.

We bring a structured way to anticipate that drift. Every program is read across the twelve dimensions of the Human Behavior Taxonomy™ and pressure-tested against a catalog of 200+ documented perverse incentives from public-sector deployments worldwide.

Who it's for
  • Policy teams designing or revising a program with measurable targets.
  • Regulators worried about the behavior a new rule will provoke.
  • Public-sector innovation units running pilots and RCTs.
  • Multilaterals and NGOs designing cross-border programs.
  • Elected officials and chiefs of staff stress-testing a flagship initiative.
What you get
  • A second-order consequence map for the proposed policy or program.
  • A redesigned incentive structure with the perverse loops named and removed.
  • An evaluation plan instrumented for behavior, not just outputs.
  • Stakeholder-ready briefing materials, written for the room you'll defend it in.
  • Optional closed-door working session with your stakeholders or coalition.
Recent work · anonymized

Policies we've quietly redesigned.

Federal agency

Grant program was rewarding paperwork, not outcomes.

Restructured the reporting incentive so applicants competed on measurable impact, not narrative length.

State workforce board

Job-training metric was creating ghost placements.

Reweighted reimbursement around 90-day retention. Placement volume held; ghost-rate collapsed.

Municipal · public safety

Patrol allocation was being gamed by call-volume targets.

Replaced the target with a community-outcome composite. Calls dropped; trust scores rose.

Multilateral · climate

Carbon offset program was paying for what would happen anyway.

Re-tied issuance to verified additionality. Issuance volume fell; integrity premium rose.

State · housing

Affordable-housing voucher utilization was stuck.

Diagnosed the landlord-side disincentive; redesigned the carry, lifted lease-up rates two quarters.

City · transit

On-time rate was being achieved by skipping stops.

Reweighted to a rider-experience composite. On-time held; complaints fell.

ROI

3x floor, guaranteed.

We have seen up to 200x on policy redesigns.

2026 Roster

Only 10 engagements.

20 in 2027 across business, government, and orgs.

Engagement

$100k retainer · $50k sprint.

Annual policy advisory, or a two-week redesign sprint.

Bring us the policy.

Tell us the program, the population, the metric, and what could go wrong.

Start an inquiry →