CentralNotice From Wikipedia, the free encyclopedia Jump to: navigation , search The cobra effect occurs when an attempted solution to a problem actually makes the problem worse. [ 1 ] [ 2 ] This is an instance of unintended consequences . The term is used to illustrate the causes of incorrect stimulation in economy and politics. [ 2 ] There is also a 2001 book with the same title by German economist Horst Siebert . [ 2 ] Origin [ edit ] The Indian Cobra The term cobra effect stems from an anecdote set at the time of British rule of colonial India . The British government was concerned about the number of venomous cobra snakes in Delhi . [ 3 ] The government therefore offered a bounty for every dead cobra. Initially this was a successful strategy as large numbers of snakes were killed for the reward. Eventually, however, enterprising people began to breed cobra...