The ideas of 'prestige' and of a 'prestige economy' are coming into wider use in discussion of higher education. The terms are here set against the background of an enduring interest in issues of status. A current theoretical context is provided through Bourdieu's analyses of academic work and ideas in the field of cultural production, together with discussion of the growth of academic capitalism. Whilst prestige on its own may offer little that is entirely new, it is argued that differentiating between prestige and reputation offers a potentially valuable tool for understanding the effects of policy on individual and group behaviours. Trends towards differentiation among institutions and concern for inclusiveness both require an appreciation of this distinction if policies are to achieve their intentions. Current concerns about world-class universities, the need for a 'triple helix' and the status of teaching are explored to indicate ways in which the distinction can be illuminative. The implications for policy formation and review are considered.