In economics, a perverse incentive is an incentive structure with undesirable results, particularly one where those effects are unexpected and contrary to the intentions of its designers. The results of a perverse incentive scheme are also sometimes called cobra effect, where people are incentivized to make a problem worse.
In economics, a perverse incentive is an incentive structure with undesirable results, particularly one where those effects are unexpected and contrary to the intentions of its designers. The results of a perverse incentive scheme are also sometimes called cobra effect, where people are incentivized to make a problem worse.
Source: Wikipedia "Perverse incentive" · CC BY-SA 4.0
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