We use rich microeconomic data on performance and choices of students at college entry to study the interaction between … which preferences and expectations of students are identified from data on choices and multiple exam grades. Counterfactuals … timing of choices and exams are shown to increase welfare. Redistribution among students or schools is sizeable in all …

This paper analyzes optimal grading in a world that focuses on top grades. Students choose an effort level, their … coarseness of the grading scale to maximize student welfare. When choosing their effort, students overweight outstanding - or …