People are motivated by incentives

The phrase "People are motivated by incentives" means that people are motivated by the potential rewards or consequences of their actions. In other words, when people are presented with incentives, they are more likely to take actions that will result in the desired outcome or reward.

This principle applies to a wide range of contexts, from personal decisions about health and lifestyle choices to business decisions about investments and hiring practices. For example, if a company offers a bonus for employees who meet certain performance targets, those employees are likely to work harder or take steps to improve their performance in order to earn the bonus.

The concept of incentives can also explain why certain policies or regulations are effective or ineffective. When designing policies or programs, policymakers must consider the incentives they create and how individuals are likely to respond to them. By understanding how people will react to incentives, policymakers can design policies that achieve their intended goals more effectively.