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    Incentive Design Entry #0392

    Why a quota changes the composition of output

    A quota specifies a count. Whatever is not counted becomes the cheapest thing to sacrifice, so the total holds while the mix quietly deteriorates.

    Adept
    The hidden part #0392

    A quota does not raise output. It rearranges output around the one attribute that is being counted.

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    Incentive Design Entry #0388

    Why punishing failure removes reporting, not failure

    Penalties attach to the report, not to the event. Reports are voluntary and events are not, so the measurable quantity falls while the underlying one does not.

    Novice
    The hidden part #0388

    A penalty on reports does not reduce the events. It reduces the only record that the events occurred.

    Open file