When did the incident happen when bounty on rats led people to farm rats?

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This happening is known as The Great Hanoi Rat Massacre. It took place in 1902 in Hanoi, which was a French colony at that time.

At the beginning action was a success, but as the bounty was granted for every rat's tail, soon the town was occupied by rats with cut out tails, that were left alive for breeding, and there were more and more rat farms in the downtowns.

You'll find details in "Of Rats, Rice, and Race: The Great Hanoi Rat Massacre, an Episode in French Colonial History" by Michael G. Vann.

What's interesting, the situation when an attempted solution to a problem actually makes the problem worse is called Cobra Effect, which origins come from a similar story that took place in Delhi under British rules, only this time it was about poisonous snakes. What's more, when the government finally decided to stop paying for dead cobras, they were all released alive by breeders, so the population of cobras after the happening was much bigger then previously.

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