The cobra effect
<p>It refers to a <strong>perverse incentive</strong>, in which the outcome is the opposite of the intended by the designers of the incentive structure. </p>
<p>For example, <strong>healthcare</strong> may be incentivized to treat rather than to prevent illness. With prevention, there's no payback mechanism. </p>
<p>Sometimes it is triggered by something as simple as <a class="wikilink" href="/measuring_performance_using_single_criteria/">measuring performance using single criteria</a>.</p>
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Aquiles Carattino
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