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Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and Transparency

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Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and Transparency
Topic: Technology 1:42 pm EDT, Sep 15, 2006

This paper argues that the benefits of information superiority in attaining military superiority may be vastly overestimated. The economics of ‘information-rich’ environments inherently inspire perverse incentives that frequently generate unhappy outcomes. The military must rigorously guard against the threat of ‘diminishing returns’ on its net-centric investments. Drawing on the author’s private sector experiences with net-centric transformations, several approaches for reassessing the military value of information transparency are suggested.

Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and Transparency



 
 
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