The Mental Models Daily Podcast

Goodhart's Law


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Goodhart's Law is an economic principle named after economist Charles Goodhart, which states that "when a measure becomes a target, it ceases to be a good measure." In other words, when a metric or indicator is used as a target for performance evaluation or incentivization, individuals or organizations may manipulate the metric to achieve desired outcomes, undermining its reliability and effectiveness as a measure of performance.

When a measure becomes a target, it ceases to be a good measure 🎯📉

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The Mental Models Daily PodcastBy Mental Models Daily

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