Incentives work . . . sometimes too well

Kerry Howley links to a report in Slate on how incentives can lead to unexpected consequences:

Give Birth to a Patriot on Russia Day was cooked up three years ago by Ulyanovsk's governor, Sergei Morozov, to prod the local population into improving the region's dismal 2-to-1 death-to-birth ratio. It worked like this: Women who gave birth on June 12 would be guaranteed one of a variety of prizes—refrigerators, TV sets, washing machines, even cash, and one lucky family would be picked to win the grand prize: a brand-new Russian-made jeep called the UAZ-Patriot.

[. . .]

On June 12, while Russia enjoyed its day off, doctors all over Ulyanovsk struggled to survive the most hellish day of their professional careers. The region's maternity wards, which usually stood half-empty, were suddenly filled beyond maximum capacity. Masses of screaming pregnant women seemed to materialize out of thin air. Stressed-out and sleep-deprived doctors ran around frantically attending to patients. Most doctors were forced to work multiple shifts just to keep up with demand.

When the clock finally struck midnight and the last bloody sheet dropped to the ground, the tally was impressive. Eighty-seven children were born in Ulyanovsk that day, nearly four times the region's average daily birthrate. With just a few prizes, Morozov's team had found a solution to a problem that has haunted Russia for the last two decades. Or so it seemed.