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Principle #04

  • Richard W Swinney
  • Jun 27
  • 1 min read

Updated: Jul 10

People respond to incentives.


Incentive is something that induces a person to act based on punishment or reward.



A rational person makes decisions by comparing costs and benefits. So, a rational person responds to incentives.



If it is normative for a person to be rational, an incentive is normative for that person to focus on being rational.


 
 
 

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