Reading Incentive Structures
A methodological approach to understanding what actors actually optimize for rather than their stated objectives.
Reading Incentive Structures
Stated goals and actual incentives frequently diverge. This essay presents a methodology for identifying true incentive structures beneath surface narratives.
Observation Over Assumption
Rather than accepting stated objectives, we examine actual behavior patterns to reverse-engineer underlying incentives.
Hidden Constraints
Many apparent contradictions resolve when we identify hidden constraints that shape decision-making in ways actors cannot publicly acknowledge.
The Framework in Practice
Applying these observations reveals that many situations contain untapped opportunities precisely because existing actors face incentive structures that prevent them from exploiting those opportunities.