We conduct a laboratory experiment to test theoretical predictions about subjects' performance in an effort task conditional on their peer group's composition and relative performance feedback. Subjects are grouped either randomly or according to their ability, with the feedback being the best...

We develop a model of student decision making that shows that it depends on the culture of competitiveness in a country whether it is optimal to choose a School design with ability tracking or comprehensive schooling. Students with different cultural background differ in their concern for...