Why are incentives preferred over regulations, when possible?

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07-09-2022
Advanced Placement (AP)

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Why are incentives preferred over regulations, when possible?

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Azikennamdiidn Azikennamdiidn · Answer 1 · 2022-09-09T14:26:57-04:00

Incentives are preferred over regulations WHEN POSSIBLE because, they serve as motivation tools that are extrinsic in nature which serve to get people to comply with a code of conduct. Think of incentives as "carrots" and "regulations" as the "stick".

What are incentives?

An incentive is anything that motivates someone to perform something or work harder.

Extra money paid to employees who work extra hours on a project is an example of an incentive. Inducing or motivating others. A monetary incentive for high productivity.

What are regulations?

Regulation is the administration of complicated systems in accordance with a set of rules and patterns.

These sorts of laws occur in several sectors of biology and society, according to systems theory, however the phrase has somewhat varied connotations depending on context.

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