incentives - Concepts

Explore concepts tagged with "incentives"

Total concepts: 8

Concepts

Public Good - A good that is non-excludable and non-rivalrous, meaning everyone can use it and one person's use does not reduce another's.
Moral Hazard - The tendency for people to take greater risks when they are insulated from the consequences, often because someone else bears the cost.
Overjustification Effect - The phenomenon where external rewards decrease intrinsic motivation to perform an activity that was previously enjoyed for its own sake.
Skin in the Game - Having personal stake in outcomes leads to better decision-making and ensures accountability.
Principal-Agent Problem - A conflict of interest that arises when one party (the agent) is empowered to act on behalf of another (the principal) but has different incentives and more information.
Collective Action Problem - A situation where multiple individuals would benefit from cooperating but fail to do so because of conflicting individual incentives.
Free-Rider Problem - When individuals benefit from a shared resource or collective effort without contributing to its provision.
Mechanism Design - The field of economics that designs rules, incentives, and institutions to achieve desired outcomes when participants act in their own self-interest.