Skip to main content

Search from vocabulary

Content language

Concept information

Preferred term

incentive compatibility  

Definition

  • Incentive compatibility means that the interests of two or more individuals are aligned; in contrast, when interests are not aligned, the incentives governing behavior are said to be incompatible. From an organizational perspective, incentive compatibility means that the incentives that motivate individual members in their actions are consistent with the organization's goals. [Source: Encyclopedia of Business Ethics and Society; Incentive Compatibility]

Broader concept

Belongs to group

URI

https://concepts.sagepub.com/social-science/concept/incentive_compatibility

Download this concept: