Incentive Theory

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.

Related terms

Motivation:

Motivation refers to the internal and external factors that drive behavior. It encompasses various theories, including the Incentive Theory, which focuses on how rewards and punishments influence motivation.

Extrinsic Motivation:

Extrinsic motivation refers to being driven by external rewards or avoiding punishment. It involves engaging in activities for specific outcomes rather than personal interest or enjoyment.

Positive Reinforcement:

Positive reinforcement involves providing a desirable stimulus after a behavior occurs, increasing the likelihood of that behavior being repeated in the future. This aligns with the concept of incentives in the Incentive Theory.