The Cobra Effect: How Good Intentions Lead to Bad Outcomes

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“Cobra Effect” refers to a situation where good intentions lead to bad outcomes through misguided incentives. The term originated in n the early 1900’s, when British colonizers tried to solve a cobra problem in Delhi, India. British authorities announced that there would be a reward for every cobra they received. The Indian locals raced out into the streets, tracking down cobras and turning in their bodies. The plan worked…until it didn’t.

It wasn't long until cobras were seen as a valuable item. Locals began breeding cobras, just to claim the reward for turning them in. Cobra breeding became a profitable business. The British government was confused because the amount of snakes kept rising. After a few years, they caught on to what was happening, and stopped offering the reward. Suddenly cobras were worth nothing, so breeders set them free. It is even said that the problem was worse than before the government intervened in the first place.

This video explores numerous examples of how good intentions lead to bad outcomes and what we can do to improve incentive structures.

This video was written by Chris Meyer and After Skool. Check out more of Chris Meyer's brilliant writing here

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