The website ultrinsic.com has developed an \"ulterior motive that causes the per

Question

The website ultrinsic.com has developed an "ulterior motive that causes the person to have an intrinsic love of knowledge." At Ultrinsic, students pay a small entry fee to compete in grades-based contests for cash prizes. Suppose that 20 students from your economics class each pay $20 to enter a grades-based contest. This would create a $400 prize pool. An equal share of the $400 pot is awarded at the end of the term to each contestant who earns an A in the course. If four students earn A's, they each receive $100. If only one student earns an A, that person gets the entire $400 pot. What economic concept is Ultrinsic harnessing in order to encourage participants to learn more

Explanation / Answer

Ultrinsic is harnessing the concept of allocation in order to encourage participants to learn more. Here, with the given amount of prize, allocation is being made between the contestants.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.