Cabaret cards, music royalty structures, sales quotas, and an American Federation of Musicians strike all started with good intentions but brought with them unintended consequences that transformed their industries that weren’t always positive. However, with proper planning and foresight, policy makers can foresee and prevent unintended consequences.
Read MoreBusiness should take care that their bonus programs and contracts incentivize behavior that leads to the desired goals.
Read MoreBy viewing a contract from the other party's perspective, a party not only can ensure that the contract doesn't incentivize undesirable behavior but also can foster a stronger relationship through understanding the other party's needs.
Read MoreSometimes, policies also can backfire and create unintended consequences. For instance, in 2014, the Maryland legislature outlawed the sale of high-proof alcohol, only to find out that it had an impact on the violin repair business.
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