What is Material incentive (behavior)?
A material incentive for behavior provides a tangible reward contingent on performing the target behavior itself, regardless of the outcome produced.
How it works
Material incentives add an immediate external reward to behaviors whose natural rewards are delayed. They are effective for initiating behaviors but carry risks: the behavior may stop when the incentive is removed (overjustification effect), and extrinsic rewards can undermine intrinsic motivation. The most effective designs use incentives as a bridge to habit formation, tapering them as the behavior becomes self-sustaining.
Applied example
A program paying patients $5 for each gym visit produces immediate attendance increases. However, when payments stop, attendance drops unless the habit has formed during the incentive period.
Why it matters
Material incentives are powerful short-term activators but must be paired with habit formation strategies to produce lasting change beyond the incentive period.
