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When One Person's Performance Is Judged Relative to the Performance

Question 42

Multiple Choice

When one person's performance is judged relative to the performance of other people and not by an absolute standard,


A) players will over invest in performance enhancements.
B) players will under invest in performance enhancements.
C) the incentive to sabotage the other players is lessened.
D) a positional externality is not possible.
E) the incentive to "play fair" is maximized.

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