Winner-take-all markets, in which the rewards for being the top performer(s) are vastly greater than for even close competitors, have long been common in sports and entertainment. In these markets, the rewards are based on relative, rather than absolute performance. This article shows how technological innovations, expanding global trade, and changes in social norms are making these markets increasingly common in fields as diverse as law, journalism, consulting, medicine, investment banking, corporate management, publishing, design, fashion, and higher education, among others. It argues that winner-take-all markets increase income inequality, waste talents and resources, and affect the culture in disturbing ways, all of which profoundly affect individual Well-being. However, solutions are suggested to diminish both the allure of the top rewards and the pernicious effects of cutthroat competition.
