A perverse incentive is an incentive that has an unintended and undesirable result which is contrary to the interests of the incentive makers. Perverse incentives are a type of unintended consequences.
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Famous quotes containing the words perverse and/or incentive:
“The perception of the comic is a tie of sympathy with other men, a pledge of sanity, and a protection from those perverse tendencies and gloomy insanities in which fine intellects sometimes lose themselves. A rogue alive to the ludicrous is still convertible. If that sense is lost, his fellow-men can do little for him.”
—Ralph Waldo Emerson (1803–1882)
“Above all, though, children are linked to adults by the simple fact that they are in process of turning into them. For this they may be forgiven much. Children are bound to be inferior to adults, or there is no incentive to grow up.”
—Philip Larkin (1922–1986)