From Reason.tv, and new to us, at least, if not exactly new, with vignettes on reef reconstruction, ethanol subsidies, and child health insurance (via Hodak Value). And from Mark Perry, “Some Great Examples of Unintended Consequences from Wikipedia’s Listing for ‘Perverse Incentives.’” An example, from an economics text by James Gwartney and Richard Stroup:
In the former Soviet Union, managers and employees of glass plants were at one time rewarded according to the tons of sheet glass produced. Not surprisingly, most plants produced sheet glass so thick that one could hardly see through it. The rules were changed so that the managers were rewarded according to the square meters of glass produced. The results were predictable. Under the new rules, Soviet firms produced glass so thin that it was easily broken.
Don’t miss the rat-farming and dinosaur-bone examples, either.