2023 Nathan’s Hot Dog Eating Contest

EconEye Admin

3 years ago

The annual Fourth-of-July contest will be held on Coney Island in Brooklyn, N.Y., where competitors race to consume the most hot dogs (with buns) in ten minutes. Prize money is shared as follows: First place, $10,000; second place, $5,000; third place, $2,500; fourth place, $1,500; and fifth place, $1,000.—nbcnewyork.com

Answer the following questions to check your understanding of the story.

1) What resource allocation method does Nathan’s use, and why?

Nathan’s resource allocation method is _____________.

a) force because competitors have to force themselves to eat dozens of hot dogs

b) a contest because more spectators watch when people are motivated to work hard to win the top prize

c) personal characteristics because more spectators will watch a competition when they can identify with the participants

d) majority rule because in the end, it’s the fan favorite who always wins

Wrong! - How does Nathan’s determine the winner? Why do so many spectators attend this event?

Good Job! - A contest allocates resources to a winner. Nathan’s allocates resources by contest, with the person eating the most hot dogs winning the largest prize. A contest creates an exciting event attended by thousands of spectators.

2) Is the share of prize money at Nathan’s Hot Dog Eating Contest fair?

The share of prize money _________________.

a) is fair because it draws a large number of competitors and a large number of spectators

b) is fair because the winner deserves to receive twice as much as the second-place competitor

c) isn’t fair because eating the number of hot dogs required to win is unhealthy

d) is fair because all contestants agree to follow the same rules

Wrong! - To determine if the share of prize money is fair, we look at the rules and the result. What are the rules and what is the result? Are they fair?

That's Right! - The share of prize money is fair because the rules are fair—all contestants agree to follow the same rules.

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