A. Michael Spence

Facts

A. Michael Spence

Photo from the Nobel Foundation archive.

A. Michael Spence

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

To cite this section
MLA style: A. Michael Spence – Facts. NobelPrize.org. Nobel Media AB 2018. Fri. 21 Sep 2018. <https://www.nobelprize.org/prizes/economics/2001/spence/facts/>

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