djcb comments on The efficiency of prizes - Less Wrong
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To took at a totally different area, see the Google Lunar X Prize, from their FAQ:
Obviously, you will gain many benefits (financial and non-financial) beyond the prize if you win, but I think it is safe to say that these prizes by themselves are about inspiring people, not about (direct) financial gain.
Financial gain as a result of prizes often goes to the awarders of the prize - rather than the prize recipients.