Learnings Mental Models

Goodhart’s Law: When Measurement Becomes the Target

Introduction Goodhart’s Law, a concept coined by economist Charles Goodhart, highlights the pitfalls of using quantitative metrics as proxies for complex systems. This mental model suggests that once a measure becomes a target, it loses its effectiveness, leading to distorted decision-making outcomes. Understanding Goodhart’s Law is crucial for navigating decision-making processes, as it sheds light […]