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Student effort: standards vs. tournaments

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  • Pedro Landeras

Abstract

In this article we compare a competency system based on an absolute standard vs. a competitive grading system (tournament) in terms of the student effort level they are able to motivate. We prove, unlike other previous work, that more risk does not always discourage effort under a competency grading system. Furthermore, relative advantage depends crucially on the nature of the noise distorting academic achievement. If systematic factors prevail then a tournament is preferred to a competency system based on absolute standards, while if idiosyncratic factors predominate the last is more efficient. Comparisons are effective only and only if the passing standard is fixed at the efficient level that promotes in the student the highest optimal effort.

Suggested Citation

  • Pedro Landeras, 2009. "Student effort: standards vs. tournaments," Applied Economics Letters, Taylor & Francis Journals, vol. 16(9), pages 965-969.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:9:p:965-969
    DOI: 10.1080/13504850701222129
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    Cited by:

    1. Kuehn Zoë & Landeras Pedro, 2014. "The Effect of Family Background on Student Effort," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1337-1403, October.
    2. Czibor, Eszter & Onderstal, Sander & Sloof, Randolph & van Praag, C. Mirjam, 2020. "Does relative grading help male students? Evidence from a field experiment in the classroom," Economics of Education Review, Elsevier, vol. 75(C).
    3. John Robst & Jennifer VanGilder, 2016. "The relationship between faculty characteristics and the use of norm- and criteria-based grading," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1127746-112, December.
    4. Marc Piopiunik & Martin Schlotter, 2012. "Identifying the Incidence of "Grading on a Curve": A Within-Student Across-Subject Approach," ifo Working Paper Series 121, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Marc Piopiunik, 2011. "Microeconometric Analyses of Education Production in Germany," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 40.
    6. Bertola, Giuseppe, 2021. "Exam precision and learning effort," Economics Letters, Elsevier, vol. 207(C).

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