Extrinsic incentive error
The extrinsic incentive error is assuming other people are driven mainly by outside rewards like money and perks, while seeing yourself as driven by inner rewards like learning and meaning.
In everyday life
A manager offers cash bonuses to motivate staff, assuming pay is all they care about, while the team mostly wants more interesting projects and recognition.
You say you took your job because the work matters to you, but you assume your coworkers are only there for the paycheck and the health plan.
Why your mind does this
Social life depends on guessing what others think and feel. Using our own mind as a model for other minds is fast and often roughly right, because people share a lot. It let our ancestors predict friends and rivals without needing to ask.
Its family, in 30 seconds: Mind reading
How to spot it
Ask whether you are giving others the same deeper motives you claim for yourself.
How to counter it
Ask people what they value most in their work before designing rewards or judging their motives.
Same family: Mind reading
SourcesHeath (1999)·Wikipedia