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Incentive Theory

Written by the Fiveable Content Team โ€ข Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 examโ€ขWritten by the Fiveable Content Team โ€ข Last updated September 2025

Definition

The Incentive Theory suggests that behavior is driven by the potential rewards or punishments associated with it. It posits that individuals are motivated to engage in certain actions based on the anticipated outcomes they expect to receive.

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