Question

Suppose you are in charge of a 5K race and you have $275,000 to distribute based on order of finish. You decide to pay the top ten finishers. If your goal is to make a more entertaining race, which of the two options below is a better method of distributing the payouts? Why?

Answer 1

Option A.

Because in Option A most portion of winning amount is distributed to top 5. Race will become more competitive. And higher the competition more the race would be entertaining.

While in Option B distribution of prize is gradually fall from rank 1 to rank 10. This will encourage others also to participate in the race, because even finishers who has finished race after 5th position is also getting sufficient amount of prize as compare to Option A. But this will not make race more entertaining because participants will not compete for top 5 position, they will just wish to finish in top 10.

So in Option A participant will compete to finish in top 5, which will make race more entertaining.