The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call a compensating differential.

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A compensating differential refers to the difference in wages that arises to compensate workers for undesirable aspects of a job, such as risk or unpleasant conditions, not for unique abilities or talents. Peyton Manning's salary would more accurately be attributed to factors like his skill level, marketability, and the revenue he generates for his team and the league.

The Salary of an Athlete Like Peyton Manning Is in Part