Incentives : The Scaffolding that Keeps Economic Orthodoxy from Teetering into Oblivion?

Abstract

Incentives are commonly perceived to be one of the primary motivational forces that drive a capitalistic economy. By in large, they are seen within the orthodox economic disciplinary field as the counterpart to self-interest and rational choice theory. They are described as not merely wanted but needed. The aim of this paper is to invalidate the myth that incentives are necessary for the regeneration of society. Instead, it is put forward that the two fundamental components required are human instincts and habits (which encompass norms, mores and values). In this light, the explanation of incentives as a driving mechanism for economic renewal becomes diminished.