4 ms·
Planned obsolescence is the opposite of a perverse incentive, by definition. A perverse incentive is an incentive that has an unintended and undesirable result
by ZoeZoeBee 9y ago
Planned obsolescence is the opposite of a perverse incentive, by definition.
A perverse incentive is an incentive that has an unintended and undesirable result which is contrary to the interests of the incentive makers.
Planned obsolescence is intended and has a desirable result for the incentive maker.
An example of a perverse incentive at GM would be attempting to make a few extra cents per car by squeezing suppliers and cutting corners on internal design decisions, while awarding bonuses for doing so. The end result being GM's use of a cheap ignition switch that ends up costing the company billions