Final answer:
The question refers to the disincentive effects in a business context, particularly how low financial incentives in cooperatives might demotivate workers. Purposive incentives appeal to concerns about a cause, offering motivation that isn't monetary. Collective action problems highlight the risk of individuals acting against the group's interest, and how market pressures can influence business behaviors.
Step-by-step explanation:
The student's question relates to the disincentive effects that could occur in cooperatives or other business structures that might not offer competitive financial incentives such as high salaries and bonuses, which could potentially demotivate workers. This is contrasted with purposive incentives, which appeal to someone's concern about a cause, potentially providing motivation beyond financial gain.
When it comes to collective action problems, these occur when individuals in a group would benefit from cooperating but have incentives to not do so, which can be detrimental to the group and ultimately themselves. The market can exert pressure on businesses, including discriminatory ones, that do not offer competitive pay, which might lead to losing their workers to employers who offer better compensation. Furthermore, competition from companies offering better or cheaper products can result in reduced profits or even business closure, similarly impacting workers through loss of income or employment.