DESCRIPTION OF THE STRATEGY

A token economy is a treatment procedure based on the principles of operant conditioning.

The primary goal of the token economy is to increase and maintain appropriate behavior,
although a response-cost procedure is sometimes added to reduce problem behavior. The basic
premise of the token economy is fairly straightforwardchildren earn tokens (e.g., points)
for appropriate behavior and, at a later time, exchange the tokens for backup reinforcers
(e.g., extended recess time). With an added response-cost component, children would also
lose tokens for engaging in problem behavior. Although response-cost procedures are
frequently implemented within token economies, it is beyond the scope of this entry to
address the topic in sufficient detail. Therefore, this entry will be devoted to the token
economy as a reinforcement system.
The token economy is based on the principle of generalized conditioned reinforcement.
Within the system, tokens, which are inherently neutral items, are paired during the exchange
with backup reinforcers. Through this pairing, tokens eventually function as conditioned
reinforcers for appropriate behavior. The term generalized is used to refer to the child's ability
to purchase a wide variety of backup reinforcers with tokens.
The token economy is a popular treatment system due to its many benefits, one of which is
the ability of tokens to bridge the gap between the time a behavior occurs and when the
backup reinforcer is eventually delivered. Another important benefit is that the use of tokens,
which represent a variety of backup reinforcers, can prevent the satiation that sometimes
occurs in single-reinforcer programs. In addition, the token economy is useful because it
specifies a number of target behaviors for change and can easily be used to manage the
behavior of a group of children.
Despite the apparent simplicity of the token economy, its design and execution require
considerable planning and attention to detail. When designing a token economy, at least five
factors should be considered, including (1) identifying and defining target behaviors, (2)
selecting tokens, (3) selecting backup reinforcers, (e) establishing the exchange system, and
(f) programming for maintenance. These factors are discussed in detail below.

Identifying and Defining Target Behaviors

One of the first tasks in the development of a token economy is selecting target behaviors to
include in the system. Target behaviors should be observable, reasonable in number, and
relevant to the clinical/ educational goals of the children. In addition, the children should
generally be capable of performing the behaviors, although they will obviously do so at
frequencies that are less than optimal. If children are not already able to perform the target
behaviors, an additional teaching strategy must also be used. Token economies designed for
groups of children typically include target behaviors that are relevant to most, if not all, of the
members of the group. Finally, the target-behavior list should be reviewed with each child
before the system is implemented.

Selecting Tokens
Tokens are tangible items such as points, poker chips, coupons, and tally marks on a wall
chart. They should be safe (e.g., not able to be swallowed), age appropriate, impossible to

counterfeit, and durable. Tokens should not be highly preferred (e.g., baseball cards) because
at some point they will need to be given away for a backup reinforcer. In addition, storage of
the tokens needs to be considered. One should decide whether children are capable of keeping
the tokens they earn (until the exchange) or whether they will be kept in another location such
as in a clear plastic piggy bank on the teacher's desk.

Selecting Backup Reinforcers

The power of the token economy is primarily based on its backup reinforcers; thus, they
should be selected carefully. Common backup reinforcers include highly preferred tangible
items (e.g., toys, snacks) and activities (e.g., miniature golf, choosing a story for the reading
group). There should be a wide variety of backup reinforcers, which can be posted on a
backup-reinforcer menu. Including a sufficient number of backup reinforcers on the menu
and regularly updating them help ensure that children remain motivated to earn them. Backup
reinforcers can be identified by surveying the children, observing their interactions in the
natural environment, and conducting stimulus preference assessments. Finally, items and
activities on the menu should generally be unavailable outside of the token economy.

Establishing the Exchange System

The token economy works by creating a balanced ratio of exchange between the worth of
target behaviors (i.e., the number of tokens delivered for their performance) and the price of
backup reinforcers (i.e., the number of tokens required to obtain them). Before the token
economy is implemented, each target behavior and backup reinforcer must be assigned a
token value. When assigning these values, it is important to consider how often a particular
behavior might be expected to occur, as well as the highest frequency at which a backup
reinforcer should be delivered. The more important behaviors should have higher token values
than their less important counterparts. Similarly, the highest preference backup reinforcers
should be relatively expensive within the economy. A token economy with an unbalanced
exchange ratio might result in too few appropriate behaviors and/or the delivery of too many
backup reinforcers. Keep in mind that it is common for a token economy's exchange ratio to
be adjusted during the first few weeks of implementation.
Tokens should be delivered immediately following every target behavior, at least during the
initial stages of the system. This means that within the first few hours of the program, children
might have acquired a number of tokens to spend. When developing the system, it is
important to determine at what point exchanges will be allowed. Common exchange times are
at lunch, at the end of the day, and at the end of the week. For the sake of program
management, it is not recommended to allow children the opportunity to exchange tokens at
any time. If the exchange period is too frequent, children might spend frequently instead of
saving for higher preference backup reinforcers. If the exchange period is too infrequent, the
tokens might not function as effective conditioned reinforcers. In addition, tokens should have
an expiration date (e.g., tokens not spent at the end of the week are returned to the central
bank) to prevent hoarding, which could undermine the effectiveness of the economy.

Programming for Maintenance

The token economy is a highly artificial system; thus, at some point it will need to be
withdrawn. Before implementing the token economy, or at least in its early stages, one should
develop a plan for the maintenance of its target behaviors in the absence of the system.

Common procedures for programming maintenance within a token economy include pairing
praise (e.g., a natural consequence) with token delivery, delivering tokens on an intermittent
schedule, increasing the delay between target behavior and token delivery, and increasing the
delay between exchange opportunities. Level systems can also be used to gradually eliminate
a token economy from an environment. For older children, the token economy can also be a
way to teach money management skills by, for example, incorporating in the maintenance
plan characteristics of a bank account such as using checkbook registers to keep track of
earnings.

RESEARCH BASIS
In the 1960s, Teodoro Allyon and Nathan Azrin developed and conducted the first systematic
research on the token economy. The authors originally designed the procedure for
institutionalized psychiatric patients. Since the 1960s, there have been hundreds of studies
published on the token economy, most of which were designed to evaluate its effectiveness
with a variety of populations, settings, or behaviors. Research generally indicates that the
token economy can be used effectively with a wide range of populations across the lifespan.
The token economy is also effective for individuals, as well as groups (e.g., a classroom of
students). In addition, the token economy has been demonstrated effective in home, school,
institutional, and occupational settings. The token economy has been used to maintain a
variety of behaviors, including social skills, classroom skills, personal-care skills, and
academic skills, among others. Token economies that incorporate response cost have also
been demonstrated effective in managing problem behavior, including aggression, disruption,
and noncompliance, among others.
Several studies have demonstrated the failure of a token economy to effectively change
behavior. However, these failures were frequently the result of suboptimal implementation of
the token economy, rather than an inherent flaw with the procedure itself.This issue of
treatment integrity is described further in the Complications section below.
Research has also evaluated the long-term effectiveness of the token economy because some
early studies indicated that behavior change did not maintain after the token economy was
removed. However, the results of subsequent studies have shown that, with advanced
planning, maintenance strategies such as those described earlier can greatly improve the
durability of a token economy's treatment gains.

RELEVANT TARGET POPULATIONS AND

EXCEPTIONS
Since its inception, clinicians and researchers have effectively used the token economy with a
wide range of populations and behaviors across a variety of settings. With regard to specific
populations, the token economy has been effectively implemented with children diagnosed
with learning disabilities, conduct disorder, mental retardation, and autism, among other
conditions. Despite such widespread applicability, there are several learner characteristics that
might render the token economy ineffective. First, if a child does not have the ability to
physically exchange a token for a backup reinforcer or attend to the exchange, the token
might not become a conditioned reinforcer. Second, a token economy might not be
appropriate with children for whom few reinforcers have been identified. Third, some
children might verbally refuse to participate in the token economy. However, this problem can

typically be remedied by (a) including the child in the development of the system (e.g.,
selecting behaviors, tokens, and backup reinforcers), (b) allowing the child to view other
children successfully participating in the program, and (c) ignoring protests and restricting
access to backup reinforcers outside the token economy.
In addition to considering whether a token economy is appropriate for a specific child or
group of children, it is also important to consider its appropriateness as a behavior
management system for the person who plans to implement it. Along with his or her regularly
scheduled duties, the implementer of a token economy must be able to establish and adjust the
exchange ratio, consistently monitor behavior and appropriately deliver tokens, keep track of
token earnings, and manage periodic exchanges. However, if the system is well designed and
capably implemented, and the few learner characteristics mentioned earlier are considered, the
token economy should prove to be an effective behavior-change strategy.

COMPLICATIONS
Because of its complexity, a number of events can adversely affect the token economy.
However, many of these can be anticipated and thus prevented. These events can be classified
into two main areas: problems that occur during the development of the token economy and
problems that arise after its implementation.
When developing a token economy, it is essential that the defining factors mentioned earlier
are carefully considered such that target behaviors are properly defined, sufficient backup
reinforcers are identified, tokens are not able to be counterfeited, an adequate exchange ratio
is established, and so on. These are the prerequisites for an effective token economy, and if
they are not adequately designed, the system might be compromised. It is also important to
address two additional issues. First, the token economy should have strong administrative
support from the individuals who are ultimately responsible for the environment in which it is
implemented. For example, a teacher who implements a classroom-based token economy
should have the support of the school principal. Similarly, a token economy conducted in a
residential treatment facility should be adequately supported by the facility's administrators.
Such support is important for at least two reasons. First, additional expenses might be
incurred when implementing a token economy (e.g., the cost of backup reinforcers). Second,
the token economy, although highly effective, is essentially a simulated environment based on
effective reinforcement. Some individuals might consider such a system too unnatural or even
describe its contingencies as bribery. These opinions might at some point undermine the
support of the program. If these opinions were those of an administrator, the token economy
obviously might be jeopardized. However, if implemented consistently, the token economy
can be a very effective way to manage behavior. Consequently, it is important that the person
implementing the token economy be assisted and encouraged by his or her supervisors.
After a token economy has been implemented, the most common obstacle to its effectiveness
is poor treatment integrity. In other words, if the token economy is not implemented properly,
then it obviously cannot be expected to function in an optimal manner.Common treatment
integrity problems include failure to deliver tokens on the predetermined schedule (e.g., after
every target behavior), failure to adjust the economy when it becomes unbalanced (e.g., when
children begin hoarding tokens), failure to update the backupreinforcer menu, and allowing
access to the backup reinforcers outside the token economy. Many of these problems occur for
two reasons. First, the token economy requires consistent effort to implement, which can be
difficult when someone has other duties to which he or she needs to attend. Second, when a

token economy results in initial success, the individual responsible for the system might
perceive that because things have improved, the program can be relaxed. However, one of the
reasons the token economy works is that because of its precision, specific behaviors are
effectively reinforced. Treatment integrity needs to be maintained in a token economy so that
it remains a successful reinforcement system.

CASE ILLUSTRATION
Ms. Andrews was the teacher of a small, selfcontained classroom for preadolescents who
were unable to participate in general education because of problem behaviors associated with
emotional disorders. Although each student already had an individualized behavior plan for
his or her most troublesome behaviors (e.g., aggression), many of them also failed to exhibit a
number of classroom behaviors that are important for academic success. For example, it was
not uncommon for students to skip class, arrive to class late, refuse to participate, and fail to
turn in homework. Consequently, Ms. Andrews requested special consultation with the
school's behavior management specialist, Mr. Garcia.
Mr. Garcia suggested that Ms. Andrews develop and implement a token economy in her
classroom because it is an effective way to manage the behavior of a group of children who
exhibit similar behavioral deficits. He shared with her a book on how to design an effective
token economy and met with her on a regular basis to help her design the system. Together
they developed a list of target behaviors for which the students could earn tokens. These
behaviors included arriving to class on time, participating in class discussions, and turning in
assignments, among others. Ms. Andrews posted on a wall in the classroom the list of target
behaviors along with a clear definition for each or them. She then discussed the list with her
students and teacher assistants, carefully explaining each behavior and answering all their
questions. Ms. Andrews made a few minor adjustments to the list based on the discussion.
Ms. Andrews then developed a classroom store, in which students could exchange their
tokens for backup reinforcers. Ms. Andrews observed the students during free time for 1 week
and noted the items and activities in which the students most frequently engaged. She also
asked the students what items they would like to have available in the store. After obtaining a
small token-economy budget from the school's principal, Ms. Andrews stocked the store with
a variety of backup reinforcers.
Ms. Andrews and Mr. Garcia considered several types of tokens for the system and eventually
decided to use points that would be recorded by her in a notebook, as well as by the students
at their desks. They then assigned a specific point value to each target behavior and a specific
cost to each backup reinforcer, taking care to establish a balanced economy. They also
decided to allow students to visit the store at the end of each school day. Students could
purchase something from the store at that time or bank their points for later use. However,
all points expired at the end of the week to prevent hoarding. Thus, students began each week
with a zero balance.
In addition to the token economy, Mr. Garcia developed for Ms. Andrews a simple data
collection and graphing form to allow her to track the target behaviors of each student. Ms.
Andrews used the form for 2 weeks before the token economy was implemented to identify
students' baselines so she could objectively determine whether the token economy resulted
in behavioral improvement.

Finally, Ms. Andrews met with her students and teacher assistants on a Friday afternoon to
explain the details of the token economy. The target behaviors, point values, backup
reinforcers, data collection, and exchange times were carefully discussed. The token economy
was implemented the next Monday morning.
After implementing the token economy for 1 month, Ms. Andrews observed substantial
improvements in her students' behaviors, including a small but noticeable increase in
attendance. In addition, students generally seemed to like the program. One unexpected
problem occurred when several students were observed rushing through their homework
assignments so they could earn points for turning them in; thus, the accuracy of their work
was poor. After identifying the problem, Ms. Andrews changed the definition of the target
behavior by adding a requirement that the assignment also earn a grade of C or better. This
change seemed to adequately address the problem. Students continued to turn in their
homework assignments more often than before, but the quality of the work had improved.
After a successful first month, Ms. Andrews scheduled bimonthly meetings with Mr. Garcia to
discuss a variety of issues, including how to adjust the economy, how to update the store, and
how to eventually remove the token economy while maintaining behavior change.
James E. Carr, Tawnya J. Fraizer, and Jonathan P. Roland
Further Reading

Entry Citation:
Carr, James E., Tawnya J. Fraizer, and Jonathan P. Roland. "Token Economy." Encyclopedia
of Behavior Modification and Cognitive Behavior Therapy. 2007. SAGE Publications. 15 Apr.
2008. <http://sage-ereference.com/cbt/Article_n2132.html>.

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