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THE COBRA EFFECT [EPISODE 39]
When the government of Delhi, India realized that there were too many Cobras, they took decisive government action. The net result: more cobras. How is that possible? It turns out that incentives matter, and people predictably respond to incentives.
In this episode, I talk about unintended consequences. Leaders must be aware that the effects of their actions are not always what they want them to be. Sometimes they are impacted by unintended consequences.
You can control your actions; you cannot necessarily control reactions. For that reason, you must think long and hard about the actions you take.
Here is the Foundation for Economic Education (FEE) article I referred to in the podcast:
https://fee.org/articles/the-cobra-effect-lessons-in-unintended-consequences/?fbclid=IwAR1Iz4CdMhVgHqRF11qO_E6g3-RcZabvr5SfqLpkBJuYTbYKJ6BsrddewkQ
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