Many of your examples are maybe fixed by having a large audience and some randomness as described by Robo.
But some things are more binary. For example when considering job applicants an applicant who won some prestigious award is much higher value that one who didnt. But, their is a person who was the counterfactual ‘second place’ for that award, they are basically as high value as the winner, and no one knows who they are.
I agree this is an inefficiency.
Many of your examples are maybe fixed by having a large audience and some randomness as described by Robo.
But some things are more binary. For example when considering job applicants an applicant who won some prestigious award is much higher value that one who didnt. But, their is a person who was the counterfactual ‘second place’ for that award, they are basically as high value as the winner, and no one knows who they are.