Incentive

For other uses, see Incentive (disambiguation).
Protest sign displaying "Stop Climate Change" at climate strike in Melbourne, Australia. Climate movements may incentivize governments and industry to take collective action in the fight against climate change.

In general, incentives are anything that persuade a person[1] or organization[2] to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefore higher levels of performance.[3] For comparison, a disincentive is something that discourages from certain actions.

  1. ^ Gneezy, Uri (2011). "When and Why Incentives (Don't) Work to Modify Behavior". Journal of Economic Perspectives. 25 (4): 191. doi:10.1257/jep.25.4.191.
  2. ^ Gibbons, Robert. "Incentives in organizations." Journal of economic perspectives 12.4 (1998): 115-132.
  3. ^ Gneezy, Uri; Meier, Stephan; Rey-Biel, Pedro (Fall 2011). "When and Why Incentives (Don't) Work to Modify Behavior". Journal of Economic Perspectives. 25 (4): 191. doi:10.1257/jep.25.4.191.