Perverse Incentives, Unintended Consequences, and How You Make Policy: The Cobra Effect, Horseshoe Theory, & Barbera Streisand
Game Theory
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The Perverse Incentive
In 2008, a lot of people were very concerned about establishing a precedent for bailing out large banks that were doomed to fail. I don't know of any other industry that really has this kind of like client patron relationship that Warren Buffett has with financial institutions. The perverse incentive in this case is I think it's closer to the bailouts. And he won't go to New York. He makes them co come to Nebraska, which is fucking hilarious. "I love that someone can big dog those guys"
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