Perverse incentive
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Perverse incentive
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- Title: Perverse incentive - Wikipedia
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- Cobra effect is a term coined by the economist Horst Siebert based on an anecdote from the British colonial era in India.234 The British government, concerned about the number of venomous cobras in Delhi, offered a bounty for every dead cobra. Initially, this strategy was successful, as large numbers of snakes were killed for the reward. However, eventually, people began to breed cobras for the reward. As a result, the government scrapped the scheme. This story is often cited as an example of "Goodhart's law". ){kind=link}