Bounties, Grants, and Market-Making Entrepreneurship
In an anecdote originating during British rule of India, colonial leadership sought to reduce the number of cobras-highly venomous snakes-in Delhi by offering a bounty for cobra tails to reduce their supply. Initially, wild cobras were hunted, and all appeared well. When a suspiciously large stream...
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Published in | The independent review (Oakland, Calif.) Vol. 22; no. 4; pp. 507 - 528 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Oakland
Independent Institute
22.03.2018
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Subjects | |
Online Access | Get full text |
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Summary: | In an anecdote originating during British rule of India, colonial leadership sought to reduce the number of cobras-highly venomous snakes-in Delhi by offering a bounty for cobra tails to reduce their supply. Initially, wild cobras were hunted, and all appeared well. When a suspiciously large stream of tails was redeemed for payment, however, the government discovered that local entrepreneurs were breeding cobras for profit and so immediately disbanded the reward system. In response, the breeders released their cobras, increasing Delhi's serpent population dramatically. The incident is the presumptive basis for the term the cobra effect: instances where government efforts to solve a problem exacerbate it. |
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ISSN: | 1086-1653 2169-3420 |