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Incentive conflicts arise when the goals or motivations of different parties in a situation do not align, leading to behavior that may be counterproductive or detrimental to overall objectives. This can occur in various contexts, such as business, politics, or economics, where individual interests may override collective goals. For example, in a company, a salesperson might prioritize personal commissions over the long-term interests of the organization, resulting in suboptimal decision-making. Addressing incentive conflicts often requires aligning interests through appropriate compensation structures, communication, and collaboration strategies.

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