We develop an economic theory of tolerance where lifestyles and traits are invested with symbolic value by people … which tolerance spontaneously arises. Policy may affect the evolution of tolerance in distinctive ways, and there may be … efficiency as well as equity reasons to promote tolerance. …

recognition on employee performance. We hired more than 300 employees to work on a three-hour data-entry task. In a random sample … of work groups, workers unexpectedly received recognition after two hours of work. We find that recognition increases … subsequent performance substantially, and particularly so when recognition is exclusively provided to the best performers …