The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001
George A. Akerlof, A. Michael Spence, Joseph E. Stiglitz
A. Michael Spence
Born: 0 1943, Montclair, NJ, USA
Affiliation at the time of the award: Stanford University, Stanford, CA, USA
Prize motivation: "for their analyses of markets with asymmetric information"
Field: economics of information
Contribution: Showed how the able agents may improve the market outcome by taking costly action to signal information to poorly informed recipients. An important example is education as a signal of high individual productivity in the labor market. It is not necessary for education to have intrinsic value. Costly investment in education as such signals high ability.