Explain and apply the incentive principle, which says that if you want to predict people’s behavior, a good place to start is by examining their incentives.

Incentive principle

Explanation:

The incentive is that something motivates or encourage individuals, organization, group, society, etc.  

Incentive- principle: we are more likely to do if we get something reinforcing. If the benefits rise and if the cost rises then it is less likely. The incentive could be in different forms such as

Economic Incentives:

That motivate behaviors through money.

Social Incentives:

Increased by motivating others or through well being.  

Moral Incentives:

These are intrinsic that whatever we are doing is wrong or right.  

Per-verse Incentives:

That are unintended and undesirable result.

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