It's wrong to measure the number of Olympic medals per capita because there is an upper limit on the number of athletes a country can field in any given event.
Take for example the 100m, the US, if given the chance, would probably be able to field more runners than the three it's currently allowed. This upper limit tends to give an advantage to small countries since their pool of talent is less and can be more easily dispersed among all the events in the Olympics.
You forgot 4) Price Discrimination. Companies want to capture the consumer surplus. Someone who isn't willing to pay the full purchase price for a product just might buy it with a discount. But the companies don't want to make it easy to cash in that discount or else everybody else would get the lower price. Hence rebates.
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It's wrong to measure the number of Olympic medals per capita because there is an upper limit on the number of athletes a country can field in any given event.
Take for example the 100m, the US, if given the chance, would probably be able to field more runners than the three it's currently allowed. This upper limit tends to give an advantage to small countries since their pool of talent is less and can be more easily dispersed among all the events in the Olympics.
You forgot 4) Price Discrimination. Companies want to capture the consumer surplus. Someone who isn't willing to pay the full purchase price for a product just might buy it with a discount. But the companies don't want to make it easy to cash in that discount or else everybody else would get the lower price. Hence rebates.