I don't understand this pervasive mentality among companies that run such a cash-for-bugs scheme. Isn't the idea to encourage people to properly report bugs by

I don't understand this pervasive mentality among companies that run such a cash-for-bugs scheme. Isn't the idea to encourage people to properly report bugs by rewarding them financially, thereby discouraging them from selling the details to the highest unrelated bidder? All Google is doing is damaging its reputation.