I'm looking for a reading recommendation on the topic of perverse incentives, especially incentives that cause people to do unethical things. Yes, I checked "The Best Textbooks on Every Subject" thread and have recorded all the economics recommendations of interest. However, as interested as I am in reading about economics in general, my specific focus is on perverse incentives, especially ones that cause people to do unethical things. I was wondering if anyone has explored this in depth or happens to know a term for "perverse incentives that cause people to do unethical things", (regardless of whether it's part of economics or some other subject), as I can't seem to find one.

Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management has a fair amount about the limits of incentive plans.

From memory: incentives can work for work that's well-defined and can be done by one person. Otherwise, the result is people gaming the system and not cooperating with each other.

I don't remember whether the book covered something I heard about in the 70s or 80s about a car company which had incentives for teams assembling cars rather than an assembly line.

I was told about a shop owned by partners which had a... (read more)

-1shminux7yFor example...?

Open thread, July 29-August 4, 2013

by David_Gerard 1 min read29th Jul 2013390 comments

5


If it's worth saying, but not worth its own post (even in Discussion), then it goes here.

Of course, for "every Monday", the last one should have been dated July 22-28. *cough*