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Awards As Signals

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  • Bruno S. Frey
  • Susanne Neckermann

Abstract

Awards are widespread in all countries and are prevalent both in the public sphere and in the private sector. This paper argues, and empirically supports, that awards serve public functions and economists should take them seriously. Using a unique cross-country data set, we suggest that awards serve as signals. Awards are more prevalent the more difficult the position and status of an individual is to observe due to an anonymous and globalized setting.

Suggested Citation

  • Bruno S. Frey & Susanne Neckermann, 2010. "Awards As Signals," CREMA Working Paper Series 2010-21, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2010-21
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    1. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 79-119.
    2. 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.
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    7. Michael Kosfeld & Susanne Neckermann, 2011. "Getting More Work for Nothing? Symbolic Awards and Worker Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 86-99, August.
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    12. Katz, Eliakim & Ziderman, Adrian, 1990. "Shared investment in general training : the role of information," Policy Research Working Paper Series 535, The World Bank.
    13. Susanne Neckermann & Reto Cueni & Bruno S. Frey, 2009. "What is an Award Worth? An Econometric Assessment of the Impact of Awards on Employee Performance," CESifo Working Paper Series 2657, CESifo.
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    Cited by:

    1. Bruno S. Frey & Jana Gallus, 2014. "Awards are a Special Kind of Signal," CREMA Working Paper Series 2014-04, Center for Research in Economics, Management and the Arts (CREMA).
    2. Kerstin Bruckmeier & Georg-Benedikt Fischer & Berthold U. Wigger, 2017. "Status effects of the German Excellence Initiative," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 177-183, March.
    3. Bruno S Frey & Jana Gallus, 2016. "Honors: A rational choice analysis of award bestowals," Rationality and Society, , vol. 28(3), pages 255-269, August.
    4. Juntao Zheng & Niancai Liu, 2015. "Mapping of important international academic awards," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 763-791, September.

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    More about this item

    Keywords

    Awards; Signals; Status; Anonymity; Globalization;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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