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Knight Fever – Towards an Economics of Awards

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  • Bruno S. Frey

Abstract

Awards in the form of orders, medals, decorations and titles are ubiquitous in monarchies and republics, private organizations, not-for-profit and profit-oriented firms. Nevertheless, economists have disregarded this kind of non-material extrinsic incentive. The demand for awards relies on an individual’s desire for distinction, and the supply of awards on the provision of incentives. Relative price and income effects are shown to be identifiable and strong. A number of empirically testable propositions are formulated. As awards are (at least so far) impossible to measure adequately, empirical tests are carried out using the technique of analytic narratives

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  • Bruno S. Frey, 2005. "Knight Fever – Towards an Economics of Awards," CESifo Working Paper Series 1468, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1468
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    Cited by:

    1. Bruno S. Frey & Susanne Neckermann, 2008. "Awards: A view from psychological economics," IEW - Working Papers 357, Institute for Empirical Research in Economics - University of Zurich.
    2. Tania Singer & Ernst Fehr, 2005. "The Neuroeconomics of Mind Reading and Empathy," American Economic Review, American Economic Association, vol. 95(2), pages 340-345, May.
    3. Neckermann, Susanne & Cueni, Reto & Frey, Bruno S., 2014. "Awards at work," Labour Economics, Elsevier, vol. 31(C), pages 205-217.
    4. V. Ginsburgh & Sheila Weyers, 2014. "Nominees, winners, and losers," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 291-313, November.
    5. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position And Performance: An Empirical Panel Analysis," IEW - Working Papers 268, Institute for Empirical Research in Economics - University of Zurich.
    6. Justina A.V. Fischer & Benno Torgler, 2006. "Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital," University of St. Gallen Department of Economics working paper series 2006 2006-04, Department of Economics, University of St. Gallen.
    7. Bruno S. Frey & Susanne Neckermann, 2008. "Awards in Economics - Towards a New Field of Inquiry," CREMA Working Paper Series 2008-33, Center for Research in Economics, Management and the Arts (CREMA).
    8. Rablen, Matthew D. & Oswald, Andrew J., 2007. "Mortality and Immortality," The Warwick Economics Research Paper Series (TWERPS) 785, University of Warwick, Department of Economics.
    9. Jana Gallus & Bruno S. Frey, 2016. "Awards: A strategic management perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1699-1714, August.
    10. Todd Kendall, 2009. "An empirical analysis of political activity in Hollywood," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(1), pages 19-47, February.
    11. Gonzales-Eiras, Martín & Niepelt, Dirk, 2004. "Sustaining Social Security," Seminar Papers 731, Stockholm University, Institute for International Economic Studies.
    12. Torgler, Benno & Schmidt, Sascha L & Frey, Bruno S., 2006. "The Power of Positional Concerns: A Panel Analysis," Berkeley Olin Program in Law & Economics, Working Paper Series qt1z14v7zt, Berkeley Olin Program in Law & Economics.
    13. Armin Falk & Ernst Fehr & Christian Zehnder, "undated". "The Behavioral Effects of Minimum Wages," IEW - Working Papers 247, Institute for Empirical Research in Economics - University of Zurich.
    14. Farzin, Y.H., 2009. "The effect of non-pecuniary motivations on labor supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1236-1259, November.
    15. Rablen, Matthew D. & Oswald, Andrew J., 2008. "Mortality and immortality: The Nobel Prize as an experiment into the effect of status upon longevity," Journal of Health Economics, Elsevier, vol. 27(6), pages 1462-1471, December.
    16. Fehr, Ernst & Fischbacher, Urs & Kosfeld, Michael, 2005. "Neuroeconomic Foundations of Trust and Social Preferences," IZA Discussion Papers 1641, Institute for the Study of Labor (IZA).
    17. Bruno S. Frey & Susanne Neckermann, 2008. "Academics Appreciate Awards. A New Aspect of Incentives in Research," CREMA Working Paper Series 2008-32, Center for Research in Economics, Management and the Arts (CREMA).
    18. Jana Gallus, 2016. "Fostering Voluntary Contributions to a Public Good: A Large-Scale Natural Field Experiment at Wikipedia," Natural Field Experiments 00552, The Field Experiments Website.
    19. Bruno S. Frey & Susanne Neckermann, 2013. "Awards play an important role," Chapters,in: Constitutional Economics and Public Institutions, chapter 17, pages 313-321 Edward Elgar Publishing.
    20. Bruno S. Frey & Susanne Neckermann, 2008. "Awards: Questioning Popular Notions," CREMA Working Paper Series 2008-14, Center for Research in Economics, Management and the Arts (CREMA).
    21. Bruno S. Frey & Susanne Neckermann, 2006. "Auszeichnungen: Ein vernachlässigter Anreiz," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 271-284, May.
    22. Benno Torgler & Markus Schaffner & Sascha L. Schmidt & Bruno S. Frey, 2008. "Do Employees Care about their Relative Position? Behavioural Evidence Focusing on Performance," CREMA Working Paper Series 2008-12, Center for Research in Economics, Management and the Arts (CREMA).
    23. Chan, Ho Fai & Frey, Bruno S. & Gallus, Jana & Torgler, Benno, 2014. "Academic honors and performance," Labour Economics, Elsevier, vol. 31(C), pages 188-204.
    24. Bruno S. Frey & Susanne Neckermann, 2013. "Prizes and awards," Chapters,in: Handbook on the Economics of Reciprocity and Social Enterprise, chapter 27, pages 271-276 Edward Elgar Publishing.

    More about this item

    Keywords

    incentives; motivation; awards; orders; distinction; principal-agent;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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