The trouble is far older than computers. Whenever people are paid, ranked or promoted by a number, the number starts to drift away from the thing it was meant to track, because writing down precisely what you want is much harder than it sounds. In 1902 the French colonial government of Hanoi, fighting a plague scare, paid a bounty for every rat tail handed in. Officials soon noticed tailless rats running in the streets: catchers were cutting off the tails and letting the rats go to breed, and inspectors later found rat farms on the edge of the city.The historian Michael Vann, who found the daily ledgers in the French colonial archives, reports 20,114 rats killed on 12 June 1902 alone. The bounty was one cent per tail, and it was eventually cancelled. The proxy was tails; the goal was fewer live rats.
Modern institutions, with auditors and lawyers, fare no better. Wells Fargo pressed branch staff to sell more products to every customer, and employees opened roughly 1.5 million deposit accounts that customers may never have authorised.A 2017 review raised the count to about 3.5 million accounts, and about 5,300 employees were fired; the chief executive’s slogan was “Eight is great”, meaning eight products per customer. In 2020 the bank paid $3 billion and admitted that from 2002 to 2016 employees had falsified records and forged signatures to meet sales goals. In Atlanta, where schools were judged on state test scores, investigators found organised cheating at most of the schools they examined, much of it teachers erasing wrong answers and filling in right ones.A 2011 state investigation found cheating at 44 of 56 schools and implicated 178 educators; in 2015, 11 of the 12 educators tried were convicted under Georgia’s racketeering law. The answer sheets could be edited by the people being graded, which is the closest human parallel I know to an agent editing its own tests. English ambulance services were told to reach life-threatening calls within eight minutes, and the recorded response times began to bunch up just under the line.In about a third of ambulance trusts, response times had been “corrected” to fall under eight minutes. For the four-hour emergency-department target, 96% of patients were officially seen in time in 2004/05, but only 77% said so in a patient survey. Each time, the number improved while the thing it stood for did not.
The economist Charles Goodhart made the point about monetary statistics in 1975, and the line everyone quotes, “when a measure becomes a target, it ceases to be a good measure”, is in fact the anthropologist Marilyn Strathern’s 1997 paraphrase. Whoever said it best, the pattern now called Goodhart’s law has the same shape in every case above: the people being measured could reach the measurement, and the gaming happened exactly where the measure was blind. Hold on to that sentence, because it describes a trained model just as well.You may know a story about a cobra bounty in British Delhi that led to cobra farms. No primary record of that episode has been found, and the phrase “cobra effect” dates only to 2001, so I treat it as a parable and use the rat ledgers instead.