What are Incentives?
Incentives are things offered to help in the decision making process. Incentives are offered to encourage people to act in certain ways. Some incentives make people better off and reward them for their actions. Other incentives leave people worse off and penalize them for their actions.
Types of Incentives:
Monetary – involves money
Positive – a sales commission; a reward for finding something
Negative – a parking ticket; a fine
Non-Monetary – doesn’t involve money
Positive – congratulations; good grades
Negative – detention; a bad reputation