ationswe are likely to care about a broader range of outcomes than could be measured by available performance measures and rewarded by feasible incentive systems. With respect to these broader outcomes, it is important to know how incentives change the way people are disposed to act when they are not being directly affected by the incentives.

We consider these points further in Chapter 4 in the context of our discussion about the use of test-based incentives in education, with the caveat that we are able to say little about how these incentives have changed people’s dispositions to act when they are not being directly affected by the incentives.



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