Incentives
EconomicsBehavioral PsychologyMotivation
Incentives are rewards or penalties that influence behavior and decision-making.
Introduction
Incentives are rewards or penalties that influence behavior and decision-making.
Core Concepts
- Positive Incentives: Rewards for desired behavior.
- Negative Incentives: Penalties for undesired behavior.
- Perverse Incentives: Misaligned rewards leading to unintended consequences.
Applications
- Business strategy for motivating employees.
- Policy-making to encourage sustainable behavior.
Related Resources
- Book: "Freakonomics" by Steven Levitt and Stephen Dubner.
- Tools: Incentive design frameworks.