Cobra effect

The Cobra effect describes the phenomenon that measures taken to solve a particular problem, can also exacerbate this. He was known by the same name Horst Siebert's book, in which the consequences of providing false incentives for the industry were represented.

The name goes back to a historical event in India: A British governor wanted a cobra Plage halt by exposing a bounty on each copy imposed. Apparently the concept worked well at first, more and more dead snakes were delivered. However, their number was not reduced, since the population to over went to breed cobras and kill in order to continue to benefit from the premium.

When the bounty was lifted after a certain period, the breeder let the animals free, since they had no more use for it - this was thanks to (indirect ) government funding multiplies the number of cobras.

The Cobra Effect is an example of an unintentional misdirection due to avoidance behavior, one of the listed by Joseph Stiglitz types of government failure.