Incentives. What are they? Incentives are what drive people to do what they do. If I told you to go run 15 miles would you do it? Probably not, but if I told you I will give you $1,000,000 if you did then would you run 15 miles? You probably will…why? You now have an incentive to throw your body into an extreme state of excessive exhaustion and sweat buckets. Who wouldn’t run 15 miles for $1,000,000? My point is that we as humans will only do something if we can gain something from it; if we have an incentive. Everyone is always trying to maximize their utility. Will a student participate in class and do his or her homework just for the heck of it? No of course not! He or she will do it because it makes him or her feel accomplished, feel involved, or because he or she receives a grade for the work done.
Well, at least that’s how eye see it.