Incentive structures are systems designed to motivate individuals or groups to achieve specific goals or behaviors. These structures can include rewards, bonuses, or recognition that encourage desired actions. For example, a company might offer financial bonuses to employees who meet sales targets, thereby promoting higher performance. Incentive structures can be found in various settings, including businesses, education, and public policy. In education, teachers might use grades or prizes to encourage students to complete assignments. In public policy, governments may implement tax breaks to incentivize businesses to invest in renewable energy, promoting environmentally friendly practices.