What Cobras Can Teach Us About Incentives

Summary

The video script narrates the 'Cobra Effect,' a term coined from historical incidents where incentives unintentionally led to increased problems. In Delhi, a bounty on cobra tails led to increased cobra populations as tails could regrow. Similar outcomes were seen in Vietnam with rats and in Georgia with feral pigs. The script extends this concept to dolphins trained to collect trash, which began tearing apart trash for more rewards. It concludes that it's not intentions but incentives that drive behavior, regardless of species or society.

Takeaways

• 🐍 The British in early 20th century Delhi tried to reduce the cobra population by offering a bounty for severed cobra tails, which inadvertently led to an increase in the cobra population as locals found a way to profit without killing the cobras.
• 🐉 The unintended consequences of the cobra bounty policy in Delhi became known as the 'Cobra effect', illustrating the law of unintended consequences where outcomes of policies are the opposite of what was intended.
• 🇫🇷 A similar situation occurred during the French occupation of Vietnam, where a bounty on rat tails led to an increase in the rat population due to locals profiting from the bounty without actually reducing the rat population.
• 🐷 In 2007, Fort Benning, Georgia faced a similar issue with feral pigs, where a bounty on pig tails resulted in an increase in the number of pig tails and a decrease in pig populations.
• 🐬 Dolphins, when trained to bring trash and dead seagulls for rewards, learned to manipulate the system by tearing apart trash and seagulls to maximize their rewards, demonstrating that incentives can drive behavior changes in animals.
• 🤔 The story of the dolphins shows that it's not just intentions behind policies that affect behavior, but the incentives provided, which can lead to unexpected outcomes.
• 🔄 The 'Cobra effect' is a recurring theme across different societies and species, indicating that the design of incentives is crucial in achieving desired outcomes.
• 🌐 The script suggests that profit-driven incentives can lead to counterproductive results, highlighting the need for careful consideration when designing policies or reward systems.
• 🔎 The examples provided in the script serve as cautionary tales, emphasizing the importance of understanding the potential repercussions of incentives in policy-making.
• 📚 The script encourages viewers to explore more educational content on the topic, suggesting a broader interest in understanding the impact of incentives on behavior.

Q & A

What is the 'Cobra effect' mentioned in the script?

The 'Cobra effect' refers to a situation where a well-intentioned policy or action has the opposite of its intended effect, often due to unintended consequences. It originated from the British in Delhi, India, who offered a bounty for every severed cobra tail, leading to an increase in the cobra population as locals bred cobras for their tails without killing them.

Why did the British in Delhi implement a bounty on cobra tails?

The British in Delhi implemented a bounty on cobra tails to reduce the cobra population, which was upsetting the sensibilities of the occupying British aristocracy. However, the policy backfired as cobras could live and breed without their tails, leading to an increase in their numbers.

What is the historical example from Vietnam that is similar to the 'Cobra effect'?

During the French occupation of Vietnam in the early 1900s, a similar situation occurred with rats. The French offered a bounty for every severed rat tail, which led to an increase in the rat population as locals bred rats for their tails without killing them, mirroring the 'Cobra effect'.

What happened in Fort Benning, Georgia, in 2007 that is related to the 'Cobra effect'?

In 2007, Fort Benning, Georgia, faced an issue with feral pigs. The proposed solution was to offer a bounty for their tails, which led to a suspicious increase in the number of tail-less feral pigs and domestic pigs mysteriously losing their tails, illustrating the 'Cobra effect'.

How did dolphins in the script demonstrate the 'Cobra effect'?

Dolphins were trained to bring trash and dead seagulls to their handlers for treats. One dolphin learned to tear apart each piece of trash and gull to maximize rewards, and others followed suit, even hunting for goals and dragging in trash to increase their rewards, demonstrating the 'Cobra effect' in action.

What is the moral of the story presented in the script?

The moral of the story is that it's not the intentions behind a policy that affects people or animals' behavior, but the incentives. The 'Cobra effect' illustrates that unintended consequences can arise from policies that don't account for the incentives they create.

Why did the dolphins tear apart the trash and seagulls?

The dolphins tore apart the trash and seagulls to increase the number of pieces they could exchange for rewards. This behavior was a response to the incentives provided by the reward system, showcasing how incentives can drive behavior.

What does the 'Cobra effect' imply about policy-making?

The 'Cobra effect' implies that policy-making should consider the potential incentives and unintended consequences of a policy. It suggests that policies should be designed with a deep understanding of the behaviors they might encourage or discourage.

Are there any lessons from the 'Cobra effect' that can be applied to society?

Yes, the 'Cobra effect' teaches that policies and incentives should be carefully designed to avoid unintended consequences. It highlights the importance of understanding the potential reactions to incentives in any policy or system.

How can the 'Cobra effect' be avoided in policy-making?

To avoid the 'Cobra effect,' policy-makers should conduct thorough impact assessments, consider the potential incentives and behaviors that might be encouraged, and possibly consult with experts in behavioral economics to anticipate and mitigate unintended consequences.

What is the role of incentives in shaping behavior, as illustrated by the 'Cobra effect'?

Incentives play a crucial role in shaping behavior, as shown by the 'Cobra effect.' They can drive individuals or animals to act in ways that maximize rewards, sometimes leading to outcomes that are contrary to the intended goals of a policy or action.