In British India, Delhi had a cobra problem.
The government offered a bounty for every dead cobra people brought in.
People started hunting them.
Then some realized there was a better business model: breed the cobras, turn them in, collect the bounty.
When the government found out, they ended the program.
Overnight, the cobras became worthless.
So the breeders released them all.
Snake charmers in India, between 1890 and 1900. Source: Frank and Frances Carpenter Collection, Library of Congress. No known restrictions on publication.
The city ended up with more cobras than before.
In the story, the British wanted fewer cobras.
But the way they paid had accidentally created a market for more.
When some people benefit from a problem continuing, getting rid of it becomes much harder.
A good system aligns people’s interests with the desired outcome.
It makes what’s good for them good for the system too.
