Incentives

Shrink Definition

Incentives are factors that increase or decrease the likelihood of a behavior by changing its expected rewards, costs, or consequences. Incentives may be: • financial • emotional • social • moral • biological • psychological • environmental Human behavior often follows incentives more reliably than intentions.

Plain language

People tend to move toward what's rewarded and away from what's costly.

Shrink Insight

People often behave exactly as the system rewards them to behave.

Why it matters

Incentives influence: • healthcare • education • parenting • business • politics • leadership • relationships Poorly designed incentives frequently produce unintended consequences.

Common misunderstanding

Good intentions can't consistently overcome poorly designed incentives.

Shrink Perspective

If you want different behavior, examine the incentives before blaming the individual.

Shrink Reflection

What behaviors does your current environment quietly reward?

Shrink Journal

List three habits. Identify the incentive maintaining each one.

Shrink Step

Increase one reward for a behavior you want more often.

Shrink Minute

Behavior follows incentives.

Shrink Takeaway

Design incentives carefully.

Medical boundary

Evidence summary

Incentives are foundational across behavioral economics, organizational psychology, public policy, evolutionary biology, and behavioral science. Incentive structures consistently influence decision-making and long-term behavioral patterns.