The Incentives & Externalities Analyzer
1 fill-in slot · from The AI Prompt Handbook for MBAs
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0/1 filledThe Incentives & Externalities Analyzer
Analyse the incentives and side-effects in this situation — who's motivated to do what, and what spills over. The situation: [DESCRIBE — A POLICY, PRICING SCHEME, COMPENSATION PLAN, OR MARKET] The players: [LIST] Provide: 1. What each player is actually incentivised to do (vs what we intend) 2. The perverse incentives or gaming the design invites 3. The externalities — costs or benefits landing on people outside the deal 4. How to realign incentives toward the outcome I want 5. The unintended consequences to watch for The core question: are people rewarded for the behaviour I actually want? Show where they aren't.
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