Wagner, Lilo - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2015
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 … coarse grading can be used to counterbalance incentives. Thus, salience can help explain why grading ranges from Pass …