incentive

…if anything, more responsive to incentives than rich people. Nominal exchange rates that are pegged without regard to domestic inflation have strong negative effects on incentives to export; producer prices for agricultural goods that are set as a small fraction of their world market price constitute a significant disincentive to…

By contrast, there are a great variety of devices that use pay as a positive motivator. The most common method of payment is according to the duration of time worked—by hour, week, month, or year. But additional merit payments may be added on at…

…to the use of the incentives and penalties of the market as a means of marshaling labour. Aristotle expressed the common feeling of his age when he declared, “The condition of the free man is that he does not live for the benefit of another.” With the exception of some…

…involved, and the role that incentives play in the decision-making processes of market participants.

…his analytic research on economic incentives in situations involving incomplete, or asymmetrical, information. He shared the 1996 Nobel Prize in Economic Sciences with William Vickrey of Columbia University.