Economic incentives can sometimes backfire or be less effective than expected because they can affect people's altruism and social preferences. Incentives can either replace or enhance these social preferences. There are four ways incentives can influence people's behavior: by providing information, framing decisions, compromising autonomy, and shaping new preferences. Well-designed fines and subsidies can minimize negative effects and even make incentives and social preferences work together. This means that when evaluating public policies, we need to consider how incentives can impact people's behavior.