Designing for Two Goals

“Savvy institutional designers,” Write Kevin Simler and Robin Hanson in The Elephant in the Brain, “must … identify both the surface goals to which people give lip service and the hidden goals that people are also trying to achieve. Designers can then search for arrangements that actually achieve the deeper goals while also serving the surface goals-or at least giving the appearance of doing so. Unsurprisingly, this is a much harder design problem. But if we can learn to do it well, our solutions will less often meet the fate of puzzling disinterest.”

 

In public policy research, there is a framework that is used to understand the legislative process called the Social Construction Framework (SCF). When examining the world through the SCF, we look at the recipients of particular policies and ask what social constructions are at play that shape the type of legislation surrounding these recipients. We also group the recipients into four broad groups: Advantaged, Contenders, Dependents, and Deviants.

 

Advantaged are those who have strong political power and public respect, like veterans and small business owners. Contenders have lots of political power, but are not viewed as warmly in the public eye, such as big business or unions. Dependents are socially sympathetic groups that don’t have much political power, such as sick children who can’t vote but evoke sympathy. The final group, Deviants, are socially scorned and politically weak, such as criminals or drug users.

 

The way we think about who belongs to which group is a social construction. That is, we attribute positive or negative qualities to groups to make them seem more or less deserving. Businesses always highlight the jobs they bring to communities, the innovations they create to make our lives better, and the charitable activities they contribute to. This is all an effort to move from a Contender status to an Advantaged status. Similarly, we see movements where people look at drug addicts and criminals in new ways, seeing them more as victims of circumstance than as entirely bad actors, moving them from Deviants to Dependents.

 

The reason this is important is because we introduce policies that either reward or punish people based on the groups they belong to. It all ties in with the quote from the book because we can either openly distribute a reward or punishment or distribute it in a hidden manner. Our policies might have stated explicit goals, but they may also provide a big business a hidden tax break. Our policies might be unpopular if they directly provide aid to former felons as they leave prison, but offering policy that is nominally intended to help the poor may provide a greater benefit to formerly incarcerated individuals than anyone else.

 

Hanson and Simler call for more sophisticated policy design that addresses our stated high-minded motivations and at the same time helps fulfill our more selfish and below the surface policy goals. SCF is a powerful framework to keep in mind as we try to develop policies and think about ways to actually enact policy that has both open surface level implications and addresses our deeper hidden purposes. This can, of course, be used for good or for ill, just as the tax code can be used to hide tax breaks for unpopular companies or help new homeowners, and just as social programs can be used as cover to assist individuals who are typically seen as Deviants.

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