Consumers are motivated to spend more when there are incentives in the form of discounts and special promotions. Their satisfaction in spending less to purchase a desired item indicates how incentives work to influence an individual's decision-making ability. The fact that the item was discounted allowed the individual to purchase it since the reduction in the price of the item provided a strong economic incentive. The concept of incentive is present in a daily life situation as it substantially influences the actions of each individual. Incentives are efficient tools used to manipulate human behavior in order to achieve desired results. However, it is deniable that incentives always deliver the expected results. Incentives do not always achieve the set objectives. This essay discusses the flaws of incentives due to the nature of the incentives themselves, discusses the effect of incentives that encourage cheating, and the result of an ineffective incentive given the circumstances. Before examining the effectiveness of an incentive, it is critical to understand the nature of the incentives themselves. According to Freakonomics, incentives are essentially divided into three aspects; social, moral and economic. Social incentives tend to determine how individuals respond to social pressure. It is an individual's needs to gain acceptance among peers, gain reputation, or conform to societal norms that cause the individual to react in a particular way. Meanwhile, moral incentives are much more subjective and individualized. Moral incentives use the rational and emotional aspects of individuals to encourage or discourage them from making certain choices. It reflects the principles of being human. It appeals to the conscience of... middle of paper... any incentive is only as effective as the amount of happiness it generates. In conclusion, incentives depend on factors such as morality, economics and social norms. A weak incentive causes negative effects and usually does not achieve its motivations. It's not even justified to cheat because there is an incentive to do so. Incentive is a tool that requires constant adjustments and modifications to ensure it works properly. On the other hand, the effects of incentives on the individual and society are very unpredictable. The incentives would remain imperfect as long as the human being strives to overcome them. Works Cited Levitt, Steven D. and Dubner, Stephen J. Freakonomics: A Rouge Economist Explores The Hidden Side of Everything. New York: Harper, 2009. Print. Bowles, Samuel. “When Economic Incentives Backfire.” Harvard Business Review, March. 2009. Network. 7 August. 2011.