This paper studies the effects of incentive mechanisms and of the competitive environment on the interaction between schools and students, in a set-up where their effort affects the students' educational attainment. We show that increasing the power of the incentive scheme and the effectiveness...

. We analyze the incidence in student’s effort from implementing two different reward systems: a standard-based model and a tournament. In the former we work in detail the effects on effort due to changes in rewards, risk level, socieconomic background and passing standard, while in the later...