Photo from the Nobel Foundation archive.
A. Michael Spence
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2001
Born: 30 November 1942, 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."
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.
Prize share: 1/3