The actions we take, whether as individuals or institutions, often lead to consequences that we did not anticipate. This phenomenon, known as the Law of Unintended Consequences (LOUC), is a fundamental aspect of human decision-making and has significant implications for various fields, including economics and social science. Despite its importance, the LOUC is often ignored by those in decision-making roles.
The concept of the LOUC was first analyzed by sociologist Robert K. Merton in 1936. He identified five sources of unintended consequences that contribute to the divergence between intended and actual outcomes of actions:
Ignorance Error Imperious immediacy of