A contest is a good way to allocate scarce resources when
A) the efforts of the players are hard to monitor directly.
B) the lines of responsibility are clear.
C) the decision being made affects a large number of people.
D) there is no effective way to distinguish among potential users.

Question

Quizplus · Accepted Answer

Contests are suitable for situations where direct monitoring of efforts is difficult, as they incentivize participants to perform well to win the resource.

A Contest Is a Good Way to Allocate Scarce Resources