Incentives matter: another example

This example comes from a review by John Blundell of "Freakonomics: A Rogue Economist Explores the Hidden Side of Everything" by S D Levitt & S J Dubner at the Institute of Economic Affairs website. Blundell writes

"Jeremy Bentham too came to mind as he stood by Millbank prison on the bank of the Thames watching boatloads of convicts head for the penal colony Australia. "50% will die en route!" he lamented. "How do you pay the captains?" asked his economist chum Thomas Hodgkin. "Per head loaded" said Bentham. "You idiot" said Hodgkin "Make it per head landed!" Well they did and survival went up to 98%. Under their new set of incentives captains loaded fewer prisoners, fed them better and [for better or worse] had a doctor on board."