Anecdotally Speaking 238 – When Incentives Backfire: The Great Hanoi Rat Hunt
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Feb 24, 2025 Explore how well-intentioned incentives can lead to unexpected outcomes, illustrated by the intriguing story of the great Hanoi rat hunt. Discover the surprising consequences of a program that paid for rat tails, including a bizarre black market for breeding rats. The discussion highlights the psychological challenges of sticking with flawed policies and reflects on historical examples like the campaign against sparrows in China. Humor and creativity emerge as key themes in navigating complex reward systems.
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The Great Hanoi Rat Hunt
- In 1902, Hanoi's French colonial government implemented a rat bounty program to combat the plague.
- This incentivized people to exploit the system by breeding rats and cutting off tails, worsening the rat problem.
Moth Massacre
- Sean Callaghan recounts his childhood experience of being paid to kill moths in his grandfather's garden.
- His grandfather later insisted on witnessing the moth killings, suspecting Sean was reusing the same moths.
Incentives Backfire
- Incentives frequently backfire due to unforeseen consequences and human ingenuity.
- Carefully consider the potential for exploitation when designing incentive systems.
