perverse incentive


Also found in: Wikipedia.

perverse incentive

Any incentive—e.g., an “item of service” payment—for a clinician to perform ineffective or potentially harmful procedure.
References in periodicals archive ?
In a market where lower supply equals higher prices, that creates a perverse incentive, one that does not encourage them to build the homes we need.
The Civil Asset Forfeiture Amendment Act of 2014 removes the perverse incentive of allowing police and prosecutors to keep what they seize.
And we see also a relatively perverse incentive in the private-pay world around this issue of complications of care," he says.
Our system already appears to give people a perverse incentive to be unemployed rather than working.
Three more criticisms: First, I find it curious that he never mentions the perverse incentive created by the practice of "PPO re-pricing (where insurers receive fees for reducing exorbitant hospital bills)," an activity that perversely leads insurers to seek out the most expensive providers.
Under the current system, claimants do not have to pay anything if they lose a case, giving people a perverse incentive to sue and ramp up their claims, the Ministry of Justice has said.
Rather, these institutions are simply responding to the perverse incentive system they confront.
Ironically, the part of the law that mandates that I must now provide insurance is actually providing the perverse incentive for me not to provide any insurance at all.
As with the children example, however, this beneficial intervention has perverse incentive effects.
Instead, it seems to have provided a perverse incentive to murder and mayhem.
We must avoid giving manufacturers a perverse incentive to simply replace diesel engines with petrol engines in these vehicles .