token economy

American  

noun

Psychiatry.

1. a method of encouraging desirable behavior, especially in a hospital setting, by offering rewards of token money that can be exchanged for special food, access to television, and other bonuses.

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token economy British  

noun

1. a type of psychotherapy in which the inmates of an institution are rewarded for good behaviour with tokens that can be exchanged for privileges

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Etymology

Origin of token economy

First recorded in 1965–70

Example Sentences

Venture capitalist Bill Gurley likens today’s token economy to the dot-com era of selling dollars for 85 cents.

From The Wall Street Journal • Mar. 29, 2026

It’s a deviation from the token economy D.C. buyers are familiar with; part of Cheeba’s revenue is reinvested into the thrift store to expand the clothing selection.

From Washington Post • Apr. 19, 2023

How would a distributed ledger and a token economy somehow challenge one of the tech giants?

From New York Times • Jan. 16, 2018

“Airworld is a nation within a nation, with its own language, architecture, mood, and even its own currency—the token economy of airline bonus miles that I’ve come to value more than dollars.”

From The New Yorker • Feb. 1, 2016