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Perverse Incentives, Unintended Consequences, and How You Make Policy: The Cobra Effect, Horseshoe Theory, & Barbera Streisand

Game Theory

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The Importance of Perverse Incentives in Game Theory

The Chinese government in this like this situation is counting on people needing to factor in their own self-interest above participating in the prisoners dilemma for the greater good. There's one other theory that you probably know a lot more about than I do, which is called the horseshoe theory. The basic idea is that all of us contribute toward a common good and then we can benefit from the common good.

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