Incentives Effect on Human Behavior

Incentives are rewards or penalties that influence our choices and actions. When we are offered something attractive, like money or recognition, we’re more likely to pursue that goal. For example, a bonus at work encourages employees to perform better. Conversely, if a behavior leads to a negative outcome, like a fine, people tend to avoid it. Understanding incentives helps us predict how people might behave in different situations, as they play a crucial role in decision-making, motivating us to act in ways that align with our interests or goals.