Spence, A. Michael

Spence, A. Michael

(born 1943, Montclair, N.J., U.S.) U.S. economist. He studied at Yale (B.A., 1966), Oxford (B.A./M.A., 1968), and Harvard (Ph.D., 1972) and taught at Harvard and Stanford, serving as dean of the latter's business school from 1990 to 1999. He is known for refining the theory of asymmetric information in the marketplace. His research demonstrated that in certain situations those who are better informed can improve their market return by transmitting information to those who know less; for example, auto dealers can convey the superior quality of their cars by offering warranties. For his work on “market signaling,” Spence shared the 2001 Nobel Prize in Economic Sciences with George A. Akerlof and Joseph E. Stiglitz.