# Incentive Design **Domain:** Economics / Systems **Doc Type:** Concept Node **Maturity:** Developed ## Definition **Incentive Design** is the deliberate arrangement of rewards, recognition, costs, and choices so that individual participation advances the health of the wider system. ## Mechanism and Practice Good incentives create value on both sides of an exchange. They make cooperation attractive to stores, suppliers, representatives, customers, and contributors without hiding pressure or transferring disproportionate risk. ## Relationships - **Related concepts:** [[wiki/Behavioral Economics|Behavioral Economics]] · [[wiki/Value Proposition|Value Proposition]] · [[wiki/Business Partnerships|Business Partnerships]] ## Simple Reminders, Quotations, and Thoughts > “Social capital can be shared as a form of value. A large platform that publicly thanks and links to a small shop and its local representative gives them visibility they could rarely buy. Thoughtful incentive design rewards everyone who helps a product reach its audience.” > **— Bryant McGill**, *Community, Product Stewardship, and the Ethics of a New Venture - Livestream (Sep 2017)* [[reminders/Social Capital/Thoughtful Incentives Reward Every Contributor by Bryant McGill|Thoughtful Incentives Reward Every Contributor by Bryant McGill]] > “Getting a new product into a store requires offering real value to the store. A request to carry products works best when it arrives with a clear benefit for the shop owner. Creative incentives can make partnership attractive on both sides.” > **— Bryant McGill**, *Community, Product Stewardship, and the Ethics of a New Venture - Livestream (Sep 2017)* [[reminders/Entrepreneurship/Partnership Begins With Value for Both Sides by Bryant McGill|Partnership Begins With Value for Both Sides by Bryant McGill]]