Economics on Latent Variablehttps://latentvariable.ai/tags/economics/Recent content in Economics on Latent VariableHugoen-usWed, 01 Apr 2026 07:30:00 +0000Goodhart's Law Has a Phase Transitionhttps://latentvariable.ai/posts/goodharts-law-has-a-phase-transition/Wed, 01 Apr 2026 07:30:00 +0000https://latentvariable.ai/posts/goodharts-law-has-a-phase-transition/A new paper proves that reward hacking isn’t a bug — it’s a structural equilibrium that gets worse as agents gain more tools. And beyond a capability threshold, agents may stop gaming the metric and start degrading the metric itself.