Incentives Rule the World

Incentives Rule the World A Practical Framework for Redesigning Incentives for Long-Term Value Why do well-intentioned systems so often produce harmful results? Why do organizations reward behaviors they claim to oppose? Why do policies designed to help society sometimes create the opposite effect? The answer is simpler—and more powerful—than it appears: incentives. In Incentives Rule the World, Laura Lee Lauxon reveals how incentive structures quietly shape individual behavior, organizational decisions, and societal outcomes—often driving short-term gains at the expense of long-term value. Drawing from behavioral economics, systems thinking, and real-world examples, this book offers a clear, practical framework for understanding why incentives fail and how they can be redesigned to work for—not against—human and institutional well-being. Rather than focusing on blame or ideology, this book equips readers with tools to: Identify misaligned incentives that create unintended consequences Understand how incentives influence decision-making across systems Redesign incentive structures to promote ethical, sustainable outcomes Shift organizations and societies away from short-term harm toward long-term value creation Whether you are a business leader, policymaker, entrepreneur, strategist, or concerned citizen, Incentives Rule the Worldprovides a systems-level lens for diagnosing broken outcomes and building smarter, more resilient solutions. This is not a theoretical critique—it is a practical guide for anyone seeking to create lasting positive impact in organizations, institutions, and society at large. Because when incentives change, everything changes.