Economies deals with flow of assets. Assets can be of any form. The center point of econimies is market place where everythings happens there.  And different laws are discovered and in the process of finding out while studying flows. Among those law one of the prime law is Cobra effect.

History

Once in mumbai, India, there was augment increased in number of Cobra snake. To reduce a number , Government announced that whoever catches Cobra and brings will be given money. The rate of cobra was fixed.  

Then everyone was running after to catch cobra. At first there was decreased in number of cobra but with time people started  to do cobra farming. Now this caused adversed effect which increased the number of cobra.

This is called the cobra effect. Doing something to reduced something but it makes adverse impact and increases rather than decreasing is known as cobra effect. 

Cobra effect can be seen in everywhere not only in economies. Like

In order to decreased pollution in New Delhi, number system was implementef where certain days were seperated for even number vechials plates and remainings days were for odd number vechials. At first everything was going on as per the policy but with time there was increased in number of vechials. People started to buy two vechials of different numbers. And due to cobra effect government  of India canceled the number system.

So , we must be aware of cobra effect. We must find out the elements that can cause cobra effect before initiating any new projects or plans

Thank you for your time......