The Incentive Principle
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The Incentive Principle
We are more likely to do something if its benefit rises, and less likely if its cost rises
Perverse Incentives
An incentive that has an unintended & undesirable result, normally contrary to the original intent of the incentive
Moral Incentives
Are intrinsic; we do/don't do something because its either right or wrong
Social Incentives
Motivate behavior by making us consider the opinion or well-being of others
Economic Incentives
Motivate behavior through payments
Incentive
Something that motivates or encourages an individual, firm, or society