Whenever one party (agent) acts on behalf of another (principal), agent incentives diverge from principal
interests. This is not an edge case — it is universal across legislatures, corporations, hospitals, schools,
and militaries. Agents optimize for what is measured, visible, and personally rewarding, not for what
principals actually want. Monitoring closes the gap partially but creates its own distortions (Goodhart's
Law: any metric becomes a target, then ceases to measure what it was meant to measure).
Corporate Governance
Representative Democracy
Public Bureaucracy
Healthcare Systems
severity: recursive
reproducible: always