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Incentives
Cobra Effect
Perverse Incentives.
The article
If
A solution designed to fix a problem creates a worse problem. In colonial India, a bounty on cobras led people to breed cobras for the reward. When the bounty was cancelled, breeders released their stock, making the problem worse.
Then
“For every incentive you create, ask: "If someone wanted to game this, how would they?" If you can find a way, the design is wrong.”
Unless
Second-Order Effects Analysis / System Dynamics
Source
Horst Siebert, Der Kobra-Effekt: Wie man Irrwege der Wirtschaftspolitik vermeidet (2001).
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