Perverse incentive facts for kids
A perverse incentive is a reward or rule that accidentally causes a bad or unwanted result. It's like trying to fix one problem, but your solution ends up making things worse, or creating a new problem you didn't expect. These unexpected bad outcomes are also called unintended consequences.
What is a Perverse Incentive?
Sometimes, people or governments create rules or offer rewards to encourage certain actions. The goal is usually good, like solving a problem. However, a perverse incentive happens when the reward or rule leads to people doing something completely different from what was intended. This often makes the original problem worse, or creates a new one.
Why Do They Happen?
Perverse incentives happen because people are clever. They will often find the easiest way to get the reward or follow the rule, even if it means doing something unexpected. The people who made the rule didn't think about all the possible ways people might react.
Real-Life Examples
Perverse incentives have happened many times throughout history. Here are a few famous examples:
The Cobra Effect in India
Too Many Snakes
Long ago, parts of India had a big problem with too many cobra snakes. Cobras are venomous, so the government wanted to reduce their numbers to keep people safe.
The Plan and Its Flaw
To solve this, the government offered a reward for every dead cobra brought in. The idea was simple: people would hunt cobras, and the snake population would go down.
The Unexpected Outcome
But something unexpected happened. Instead of just hunting wild cobras, some people started breeding cobras at home! They would raise the snakes, kill them, and then claim the reward. When the government realized what was happening, they stopped the reward. What did the breeders do then? They released all their now-worthless cobras into the wild. This made the cobra problem even worse than before! This famous example is why perverse incentives are sometimes called the Cobra effect.
Pink Armbands in Thailand
Police Mistakes in Bangkok
In Thailand, the police in Bangkok had a problem with officers making small mistakes. They wanted a way to make officers remember to do their jobs correctly.
The "Shame" Armbands
At first, the police tried using armbands with a tartan (plaid) pattern. Officers who made mistakes had to wear these armbands as a sign of shame. The goal was to make them feel embarrassed so they would try harder.
A Surprising Trend
However, the officers didn't feel ashamed. Instead, they started treating the tartan armbands like valuable collector's items! They even traded them. The armbands became a badge of honor, not shame.
Hello Kitty to the Rescue?
Since 2007, the Bangkok police have tried a new approach. They use pink armbands with the cute Hello Kitty cartoon character. The idea is that wearing something so "cute" might be more embarrassing for adult police officers. This shows how tricky it can be to create rules that work as intended!
The Rat Problem in Vietnam
Hanoi's Rat Infestation
During the time when Vietnam was a French colony, the city of Hanoi had a huge problem with rats. Rats can spread diseases, so the French rulers wanted to get rid of them.
The Bounty System
Similar to the cobra situation, the French government offered a reward for every dead rat tail brought in. People were paid for each tail they collected.
Breeding for Profit
Just like with the cobras, people quickly found a loophole. Instead of just hunting rats, some people started breeding rats in their homes! They would cut off the tails to get the reward, and then let the rats go free to breed more. This meant the rat population kept growing, even though many tails were being collected. The plan failed because of the perverse incentive.
Images for kids
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The Indian cobra
See also
In Spanish: Incentivo perverso para niños
