• Dr.C.V.Suganthamani
• Dr.R.S.Sripoorni

The Cobra Effect is traditionally understood as a policy failure where incentives backfire, creating worse outcomes than intended. However, an emerging view in behavioral economics recognizes situations where unintended consequences may instead generate positive externalities (consumer benefits and National gains). This paper explores the concept of the "Positive Cobra Effect," defined as policy actions that trigger beneficial outcomes due to unexpected behavioral responses. Through theoretical discussion and real-world examples, the paper examines how such effects arise, their implications for policymaking, and how consumers benefit over a period of time. The findings offer a nuanced understanding of incentive-based systems, suggesting that unintended consequences need not always be detrimental.

Cobra Effect, positive externalities, consumer behavior, spillover effects, unintended consequences, policy incentives.

"CONSUMER BEHAVIOR AND POSITIVE SPILLOVERS: RETHINKING THE COBRA EFFECT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 12, page no.a98-a103, December-2025, Available :http://www.jetir.org/papers/JETIR2512013.pdf

"CONSUMER BEHAVIOR AND POSITIVE SPILLOVERS: RETHINKING THE COBRA EFFECT", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 12, page no. ppa98-a103, December-2025, Available at : http://www.jetir.org/papers/JETIR2512013.pdf