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Incentive Design

What a system rewards is what a system produces.

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    Incentive Design Entry #0391

    The reason a subsidy raises the price of the subsidised

    Who receives a payment and who keeps it are separate questions. Where supply cannot expand, the payment is absorbed into the price instead.

    Adept
    The hidden part #0391

    A subsidy is paid to whoever is named and kept by whoever holds the scarce side. Where supply cannot move, the price does.

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    Incentive Design Entry #1115

    Why audits can change before they happen

    Audit incentive effect shifts behaviour before any audit occurs, because the anticipated inspection changes what people choose to hide or report.

    Master
    The hidden part #1115

    The strongest audit is often the one that has not yet arrived but has already changed the records.

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