A positional externality:
A)can only occur in sports.
B)arises in situations where absolute performance is judged.
C)results in under investment in performance enhancement.
D)occurs when an increase is one player's performance reduces the expected reward of the other players.

Question

Quizplus · Accepted Answer

Positional externalities can arise whenever rewards are based on relative position,not absolute quality.

A Positional Externality