Contests do a good job in resource allocation
A)under any circumstances.
B)when the efforts of the players are easy to monitor and reward directly.
C)when the efforts of the players are hard to monitor and reward directly.
D)when the first-come,first-served allocation method has failed.
E)only under a command system.

Question

Quizplus · Accepted Answer

Contests are effective in resource allocation when efforts are hard to monitor and reward directly, as they incentivize participants to exert effort to win the contest, thus indirectly revealing their level of effort.

Contests Do a Good Job in Resource Allocation