25 Pages Posted: 30 Oct 2010
Date Written: October 28, 2010
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.
Keywords: awards, signals, status, anonymity, globalization
JEL Classification: A13, D63, J33
Suggested Citation: Suggested Citation
Frey, Bruno S. and Neckermann, Susanne, Awards as Signals (October 28, 2010). CESifo Working Paper Series No. 3229. Available at SSRN: https://ssrn.com/abstract=1699131