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Reading Incentives Without Losing Your Soul - Sarah Guo

saranormous.substack.com · 841 words · saved by 1 readers

There’s a particular kind of cleverness that gets celebrated in startup circles: the ability to see through everything.

There’s a particular kind of cleverness that gets celebrated in startup circles: the ability to see through everything. To identify the “real” motivation behind every action. To reduce human behavior to a simple calculus of self-interest. This usually gets called being “clear-eyed about incentives.” Often it’s just cynicism wearing a Patagonia vest. Understanding incentive structures genuinely matters. If you’re building a company or investing in one, you need to think carefully about why people do what they do. You need to design compensation that rewards the outcomes you want. You need to…

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