The Complexity of Incentives

This chapter examines the multifaceted nature of incentives, revealing how monetary fines and rewards can produce unintended consequences in both personal and organizational settings. It discusses the impact of these incentives on behaviors, motivations, and workplace dynamics, emphasizing the importance of designing effective systems that align with moral obligations and social norms. Through various examples, the chapter illustrates how poorly designed incentives can stifle creativity and collaboration, urging a more thoughtful approach to influence behavior.