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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
by jetrink 8y ago
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 https://en.wikipedia.org/wiki/Arthur_Andersen#Enron_scandal
- dfee 8y ago“Profits” in your context being imagined not real. The gaming was done on the accounting side (revenue recognition) of course.