Finance & Businessfreq · 1via Dusty Flow

Disincentive

/dɪsɪnˈsɛntɪv/noun
ELI5 mode

A disincentive is a factor or policy that discourages a particular behavior or action by making it less attractive or more costly, often used to steer decisions in economics and everyday life. In modern contexts, it's a key tool in policy-making, such as taxes on harmful products, but it can sometimes lead to unexpected results if people adapt in unforeseen ways, turning what was meant to deter into a mere inconvenience.

AI-generated·

Verified sources

Your usage frequency

1 / 917