Token economy
A token economy is a behavior modification system based on operant conditioning, where individuals earn tokens for desired behaviors and exchange them for rewards. It is commonly used in schools, psychiatric hospitals, and correctional facilities.
Background
A token economy is a behavioral modification system based on operant conditioning (B.F. Skinner), where desirable behaviors are reinforced by giving tokens that can later be exchanged for rewards or privileges. It's widely used in institutional settings — psychiatric hospitals, prisons, classrooms, and autism treatment programs — to shape behavior systematically. Key figures include psychologist Teodoro Ayllon and Nathan Azrin, who formalized the approach in the 1960s. The concept also became influential in behavioral economics (as distinct from cryptocurrency "tokens"). Understanding token economies is useful for anyone encountering discussions of incentive design, gamification, reward systems in tech, or behavioral psychology applied to real-world environments.