Bounties, Grants, and Market-Making Entrepreneurship
By Caleb S. Fuller, David S. Lucas
This article appeared in the Spring 2018 issue of The Independent Review
Governments often create incentives they hope will encourage people to act in ways believed to improve social well-being. Poorly structured incentives, however, can foster perverse outcomes, as illustrated in cases regarding pest control, tuberculosis prevention, homelessness, and the recovery of soldier remains in Southeast Asia.