What term describes the allocation of resources based on who wins a competition or contest?

The term that describes the allocation of resources based on who wins a competition or contest is "contest." In economic terms, contests are systems that allocate resources by rewarding the individuals or entities that perform best in a competitive environment. This can be seen in various scenarios, such as job markets, sports, and even certain business environments where incentives are provided to those who outperform their rivals.

In these situations, the contest serves as a mechanism to determine who receives certain resources based on merit or success in the competitive process, emphasizing the role of competition in resource allocation. Unlike other concepts, such as market power or public goods and services, which focus on different aspects of economics, the idea of a contest is specifically tied to the competitive nature of allocation.