Abstract
This paper analyzes the effect of incentive-compatible self-chosen goals on academic performance by means of a randomized field experiment. We use two alternative payment mechanisms, a piece-rate and a rank-order tournament, to motivate students depending on their absolute or relative academic performance respectively. Students enrolled in Introductory Microeconomics were classified in two types depending on whether they had a failed background in this course (returning students) or they had not (new students). Controlling for potential confounding factors such as gender, degree, professor and university entrance grade, we find that both payment mechanisms are effective increasing grades of new and returning students.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
