Incentives are things that motivate or encourage someone to do something. In other words it is external stimuli that motivate behavior to occur. Positive incentives motivate approach behavior while negative incentives motivate avoidance behavior. The value of the incentive and the attractiveness of it is based on objective properties whether that is number or amount. The utility of the incentive is subjective value and based on it providing satisfaction, pleasure and usefulness. There are a number of variables that affect the subjective value or utility of an incentive. The more valuable incentives are described by bigger and better, and less valuable incentives by less or smaller. Incentives are used in various areas whether that's recognition and rewards, to improve morale or create motivation.