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Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

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41–50 of 137 posts

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#41
post #34

The breaking of this law when one uses profit as the measure of a successful company or business is why I think that a well set up market system actually works. People and companies can set up making a profit as their target and it is still a good measure of success, because it is actually what you want. The key for a good society is regulating the places where making max profits can induce bad behavior and leaving a…

The implication behind Goodhart's Law is that people are good at gaming performance measures. You can game profit measures too[1], but it's difficult and there are strong incentives not to. Another counter-example that doesn't involve fraud is Amazon, which was unprofitable for a long time.

1. https://en.wikipedia.org/wiki/Arthur_Andersen#Enron_scandal

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#42

During the Vietnam War, it was body count. That turned out to be a great way of incentivizing the most murderous troops.

When the enemy has limited personnel and equipment - targets such as body count, vehicles destroyed etc. are very good measures of progress.

And FYI the US handily and clearly won the Vietnam war; the South Vietnamese insurgency was defeated and the North Korean Army was obliterated.

Due to political pressure at home, the US withdrew after the war, and a short while later the North Vietnamese were able to rebuild their army and waltz in and topple the fragile S. Vietnamese government. The Communists then murdered 10's of thousands of people in the streets and imprisoned 100's of thousands and of course enforced totalitarian rule which kept millions in fear and poverty.

Were the Americans to have simply left a contingent of soldiers in the South, thereby keeping the legitimate threat of violence, it's unlikely the South would have fallen and might very well look like S. Korea today.

To your point, 'body count' is not a very good number to use when you're fighting an insurgency where there are a lot of irregular forces who can come in and out of fighting, or where soldiers can be replenished (i.e. North Vietnam can recruit willy nilly on their turf).

But it's still a valid measure and though you don't hear about it these days (for PR reasons) you can absolutely be assured that all NATO forces meticulously con't how many enemy forces are destroyed, and that it is a 'target' on many missions.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#43

During the Vietnam War, it was body count. That turned out to be a great way of incentivizing the most murderous troops.

When the enemy has limited personnel and equipment - targets such as body count, vehicles destroyed etc. are very good measures of progress. And FYI the US handily and clearly won the Vietnam war; the South Vietnamese insurgency was defeated and the North Korean Army was obliterated. Due to political pressure at home, the US withdrew after the war, and a short while later the North Vietnamese were able to rebuild the…

And FYI the US handily and clearly won the Vietnam war; the South Vietnamese insurgency was defeated and the North Korean Army was obliterated.

That’s a serious, if delusional claim that requires a loooooot of support. “Handily” in particular seems like a ridiculous way to state it, even if you only look at US casualties.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#44
post #41
post #34

The breaking of this law when one uses profit as the measure of a successful company or business is why I think that a well set up market system actually works. People and companies can set up making a profit as their target and it is still a good measure of success, because it is actually what you want. The key for a good society is regulating the places where making max profits can induce bad behavior and leaving a…

The implication behind Goodhart's Law is that people are good at gaming performance measures. You can game profit measures too[1], but it's difficult and there are strong incentives not to. Another counter-example that doesn't involve fraud is Amazon, which was unprofitable for a long time. 1. https://en.wikipedia.org/wiki/Arthur_Andersen#Enron_scandal

“Profits” in your context being imagined not real.

The gaming was done on the accounting side (revenue recognition) of course.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#46
post #45

Another article on the front page decries Harvard’s holistic approach to admission - with arguments that admission should be based on a single measure of academic performance (like standardized test scores, GPA, etc.).

Yes, but holistic approaches have -also- become a target. Think of the over-achieving high schoolers doing as many extra-curriculars as possible just for their college application.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#47

And as soon as a measure becomes known, it becomes the target. IMO, the law ought to be "As soon as a measure becomes known it ceases to become a good measure." "I'm fat because I can't touch my toes? Hang on, I'll be back in three weeks." "What's that? Your measure for gas consumption and co2 emissions has you go exactly 35 MPH for 10 minutes? Hmm....."

Gamification increases as understanding improves.

Information is exploited.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#48
post #40
post #34

The breaking of this law when one uses profit as the measure of a successful company or business is why I think that a well set up market system actually works. People and companies can set up making a profit as their target and it is still a good measure of success, because it is actually what you want. The key for a good society is regulating the places where making max profits can induce bad behavior and leaving a…

Unless the highest profit thing is to poison a town full of people. Which has happened when profit is what you measure as success.

Correct. "The key for a good society is regulating the places where making max profits can induce bad behavior and leaving alone where it does not." Start of the second paragraph.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#49
post #4

"You get what you measure" is the bane of KPIs everywhere. Measure deals closed, and you get deals with no regard for profitability. Measure profitability, and you will burn through your customer base by jacking prices and cutting quality. Etc etc.

When I interviewed for a data analyst position at a known startup, I was asked to define a target KPI for a controlled pseudo-A/B experiment, and I suggested total revenue. The interviewer replied "that's a dumb answer because revenue can be gamed; you should have said # of sales." I was too taken aback to follow up asking why # of sales can't be gamed too.

Credit where due, I think this is the first time I've read of anybody being told how they got something wrong in an interview.

Re: Goodhart's Law: When a measure becomes a target, it ceases to be a good measure

#50

So we should minimize the fraction of measures which have become targets then?

You shouldn't optimize at all but instead pick multiple, 'distantly related' measures and satisfice over them. That's sort of what humans do to have a robust objective function. Sufficient food, water, physical safety, love, social interaction, meaningful work, spiritual fulfillment—fulfill each of them and humans generally move on to the next 'unfulfilled' goal on the list rather than endlessly maximizing something…

That just sounds like coordinate gradient descent on a multi-term objective function. Just same old optimization but with some metaparameters or component-wise conditioning.

In fact, I think to argue against optimization, you’d basically have to boil it down to existing philosophical arguments against utilitarianism.

Either way, I’m skeptical if this conclusion is very connected to Goodhart’s Law, because it assumes some type of normative axiom that would have to precede your interpretation of Goodhart’s Law.

My main interest was to pointout that it creates a sort of impossibility theorem situation if you accept Goodhart’s Law (I don’t personally accept it as a general rule, only something that applies to some types of measures and not others).

The impossibility criteria would be something like:

- If one finds a good measure, one should optimize it.

- If a measure is an optimization target, it is not a good measure.

- For a given entity, there exists a set of variables governing how well that entity can meet a goal (e.g. measures can possibly contain relevant information).

Basically you could only choose 2.

- If you pick the first two, it means there are no general variables governing the outcone you want; they are constantly changing and fundamentally unpredictable, so you might get away with optimizing something briefly, but its informativeness immediately disappears. This type of thinking is common in efficient market theory, for example, and could be connected to a fundamental belief about non-determinism or non-stationarity.

- If you choose the first and third, it seems like standard utilitarianism.

- If you choose the latter two, it seems like fatalism or religion — there are quantities that govern achieving desired outcomes, but they cannot be treated as objective optimization criteria and can only be analyzed subjectively or fatalistically.

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