Freakonomics Analysis

The Decision Between Incentives

Steven Johnson once said, “If you look at history, innovation doesn't come just from giving people incentives; it comes from creating environments where their ideas can connect”. In the book, Freakonomics, by Steven D. Levitt and Stephen J. Dinner, Levitt explains that incentives can change one person's perspective on a situation and motivate them to do something they have not done before. People use incentives to steer others to do something in their favor. Incentives can be against you because they can change your moral incentives to twist a system into their own favor, which involves cheating.

For example, athletes can come up with incentives that can develop them with hard work or cheating.