Incentives Matter
I. Incentive
A. a thing that helps in the decision making process, to encourage people to act in certain ways
B. incentives influence behavior
Ex. - studying is not the incentive, it’s the behavior. Good grades are an incentive to study.
C. positive vs. negative
1. positive rewards people
2. negative punishes people
II. Monetary Incentives
A. money used to influence behavior
B. positive examples: sales commission, reward for finding lost dog
C. negative examples: parking ticket, $1000 fine for littering
III. Non-Monetary Incentives (social, moral, etc.)
A. socially accepted ideas of “right” or “wrong”, pride or shame, used to influence behavior
B. positive examples: good grades, congratulations
C. negative examples: detention, bad reputation