Multiple Choice

An online platform for freelance workers initially allows clients to post a project with a fixed payment. Any freelancer can accept the project, and the first one to do so gets the job. The platform then changes its rules: now, multiple freelancers can submit proposals, and the client chooses which one to hire. Based on principles from economic experiments, what is the most likely effect of this rule change on the average payment offered by clients for a typical project?

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Updated 2025-08-27

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