Incentives and the Cobra Effect
When Delhi was under colonial rule it suffered from an excess of venomous
cobras. To curb the population the government paid a bounty for dead cobras.
This triggered entrepreneurs to start breeding cobras to collect the bounty.
When the government figured out what was happening, they discontinued the
bounty which meant all the cobras being bred were worthless and were thus set
free, increasing the cobra population significantly.
The Cobra effect is when the solution for a problem unintentionally...
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