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Understanding the cobra effect: when incentives backfire

When good intentions lead to bad consequences

Understanding the cobra effect: when incentives backfire
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StarsInsider
25/12/2025 08:00 ‧ 2 hours ago | StarsInsider

LIFESTYLE

Psychology

Incentives can be used to motivate people and get them to act in desired ways. From workplace bonuses to government tax breaks, incentives drive progress, productivity, and participation. However, not all incentives work as intended.

Sometimes, they trigger unexpected behaviors and worsen the very problem they were meant to solve. This unintended consequence is known as the cobra effect. In this gallery, we explore real-world examples of the cobra effect and learn how to design smarter, fairer incentives that achieve genuine results. Intrigued? Click to know more.

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