Anecdotally Speaking
238 – When Incentives Backfire: The Great Hanoi Rat Hunt
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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Quick takeaways
- The great Hanoi rat hunt illustrates how well-intended incentives can lead to unintended consequences, highlighting the importance of thoughtful design.
- Personal anecdotes reveal how individuals can manipulate reward systems, emphasizing the complexities of aligning incentives within organizations effectively.
Deep dives
The Rat Incentive Program
A French colonial government in Hanoi implemented an incentive program in 1902 to combat a burgeoning rat population, which was spreading the plague. They encouraged citizens to turn in rat tails for payment, initially resulting in the collection of thousands of tails. However, the scheme backfired as people discovered they could cut off tails without killing the rats, leading to an increase in the rat population instead of a decrease. This historical example highlights the unintended consequences that can arise from poorly designed incentives.
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