A good incentive system aligns self-interest with the social interest.

Question

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A good incentive system should incentivize individuals to pursue their own interests in a way that also benefits society as a whole. This can lead to greater innovation, productivity, and economic growth. However, if incentives are misaligned, individuals may prioritize their own interests over the social interest, which can lead to negative consequences such as environmental degradation or social inequality.

A Good Incentive System Aligns Self-Interest with the Social Interest