In many sporting contests, such as tennis and golf tournaments, the difference in prize money from one finishing position to another decreases as you go down the placings. For example, the gap in...

In many sporting contests, such as tennis and golf tournaments, the difference in prize money from one finishing position to another decreases as you go down the placings. For example, the gap in prize money between first prize and second prize in most professional golf tournaments is larger than that between the second prize and third prize. How might this pattern of increasing gaps in prize money be designed to provide appropriate incentives for effort by participants in the contests? How could this type of payment scheme give rise to a superstar-type market?