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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 to alter their behavior in the desired manner.[1] It is emphasized that incentives matter by the basic law of economists and the laws of behavior, which state that higher incentives amount to greater levels of effort and therefore higher levels of performance.[2]

  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. ^ 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.

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