A reward or punishment that encourages people to behave in a certain way is called an incentive.
What is an incentive?
- In general, incentives are any means of persuading someone to change their behavior.
- The basic law of economists and the laws of behavior emphasize the importance of incentives, which suggest that larger incentives result in greater levels of effort and, thus, higher levels of performance.
- There are two types of incentives: intrinsic incentives and extrinsic incentives.
- People's behaviors are motivated from within.
- They are generally motivated by the task itself or the internal reward rather than the external reward in activities.
- There are numerous internal incentives, such as participation in activities, which can satisfy people's sense of accomplishment and provide them with positive emotions.
Therefore, a reward or punishment that encourages people to behave in a certain way is called an incentive.
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