Use incentives wisely from "summary" of Think Like a Freak by Steven D. Levitt,Stephen J. Dubner
Incentives are powerful motivators, but they can also have unintended consequences if not used wisely. People respond to incentives in ways that may not always align with the desired outcomes. For example, when a company offers bonuses based on short-term sales goals, employees may focus on meeting those goals at the expense of long-term success. This is known as "gaming the system" – finding loopholes or taking advantage of the rules to maximize rewards without actually achieving the intended results. One key principle to keep in mind when using incentives is to consider the full range of possible responses. People are creative and resourceful, and they will often find ways to exploit incentives to their advantage. It's important to anticipate these responses and design incentives that encourage the desired behaviors while minimizing the potential for gaming. This may involve setting clear guidelines, monitoring outcomes, and adjusting incentives as needed to ensure the...
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