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 …

. But the linear-in-means model masks considerable heterogeneity in the effects experienced by different types of students …. Using nonlinear models, one prevalent finding is larger peer effects in which high ability students benefit from the … presence of other high ability students. Studies that stratify students by race and ability often find that students are …