, by grading honestly, a school can build up reputation. Introducing a concern for reputation into an established signaling … model of grading, we show that this mechanism reduces or even avoids grade inflation. -- grading ; signaling ; reputation …

U-shaped function of his reputation for accuracy: being perceived as more precise allows to attract more good sellers … but a high expected precision also deters bad sellers. Since the certifier tries to reach a balanced reputation to attract … both types, reputation has a disciplining effect when the certifier is perceived as insufficiently accurate, but gives …