2min chapter

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Rationally Speaking #240 - David Manheim on "Goodhart's Law and why metrics fail"

Rationally Speaking Podcast

CHAPTER

Good Heart's Law of Limits

Companies respond to discreet thresholds by getting as close to the threshold as possible and then not going over it. Shorak's Law of Limits is based on something that a guy named Stephen Shorak said on Twitter which is if you put a limit on a measure, if the measure relates to efficiency, the limit gets used as a target. I'm not sure how helpful it is to start talking about which thing specifically qualifies as what we're calling a Good Heart effect or not.

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