<P> Incentives can be classified according to the different ways in which they motivate agents to take a particular course of action . One common and useful taxonomy divides incentives into four broad classes: </P> <Table> <Tr> <Th> Class </Th> <Th> Definition </Th> </Tr> <Tr> <Td> Remunerative incentives </Td> <Td> are said to exist where an agent can expect some form of material reward--especially money--in exchange for acting in a particular way . </Td> </Tr> <Tr> <Td> Financial incentives </Td> </Tr> <Tr> <Td> Moral incentives </Td> <Td> are said to exist where a particular choice is widely regarded as the right thing to do, or as particularly admirable, or where the failure to act in a certain way is condemned as indecent . A person acting on a moral incentive can expect a sense of self - esteem, and approval or even admiration from his community; a person acting against a moral incentive can expect a sense of guilt, and condemnation or even ostracism from the community . </Td> </Tr> <Tr> <Td> Coercive incentives </Td> <Td> are said to exist where a person can expect that the failure to act in a particular way will result in physical force being used against them (or their loved ones) by others in the community--for example, by inflicting pain in punishment, or by imprisonment, or by confiscating or destroying their possessions . </Td> </Tr> <Tr> <Td> Natural incentives </Td> <Td> such as curiosity, mental or physical exercise, admiration, fear, anger, pain, joy, or the pursuit of truth, or the control over things in the world or people or oneself . </Td> </Tr> <Tr> <Td> Intrinsic Motivation </Td> </Tr> </Table> <Tr> <Th> Class </Th> <Th> Definition </Th> </Tr> <Tr> <Td> Remunerative incentives </Td> <Td> are said to exist where an agent can expect some form of material reward--especially money--in exchange for acting in a particular way . </Td> </Tr>

Different type of method by which incentives can be calculated