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| − | An '''incentive''' is a factor that makes people want to do something. The pleasure of seeing a movie is an ''incentive'' that prompts viewers to pay money to see it in a theatre or obtain a DVD. Car manufacturers offer incentives to purchasers (see "[[cash-back plans]]"). Of course, the main incentive for Americans is the [[paycheck]]. This is what gets people up in the morning (when they'd rather sleep late): it so that they can get money to feed, clothe and house their families. | + | An '''incentive''' is usually some sort of reward (or a threat of punishment) that persuades a person to complete a task. Many companies use incentives to entice new customers to their business. For example, car manufacturers offer incentives to consumers, such as 0% financing, cash back offers or lifetime warranties, to bring in business. |
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| | + | Of course, the main incentive for Americans is their paycheck. Performing tasks that go above and beyond one's responsibilities at a firm can result in a bonus for that individual or consideration for a promotion, while performing below expectations can lead to termination of employment, and loss of one's income. |
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| | + | ==Minneapolis 35W Bridge Collapse & Reconstruction== |
| | + | After the collapse of the [[35W]] bridge in [[Minneapolis]] in 2007, incentives for finishing the bridge ahead of schedule had the potential of netting the company responsible for reconstruction $27 million, in addition to the original cost of replacing the bridge. On the other hand, missing the completion date would have resulted in a $200,000 a day penalty for every day past the target date. As a result of the incentives offered, the bridge was finished in September 2008, three months ahead of schedule.<ref>[http://minnesota.publicradio.org/display/web/2008/09/18/bridge_opens/ New Interstate 35W bridge in Minneapolis opens] MPR News, September 18, 2008</ref> |
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| | + | ==References== |
| | + | {{reflist|1}} |
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| | + | [[Category:Economics terms]] |
| | + | [[Category:Business]] |