From time to time, people will petition government to step in and correct perceived wrongs in the market. Often this leads to unexpected results. Without considering how people might respond to incentives, well-intentioned policies can go astray. Because people are not going to stop acting like people, governments must consider whether or not their actions create perverse incentives. Likewise, there are times when the market fails to provide goods or properly assign costs. This calls for government intervention to either provide or redirect incentives in such a way that the market functions better.

