By Roslyn Dakin. Could an economic perspective on grades help improve university teaching?
Late can be costly in childcare. When parents arrive late to pick up their children, caregivers are forced to work extra hours – often with no compensation. One solution is to charge late parents a small fine to deter this behaviour. But when economists Uri Gneezy and Aldo Rustichini did just that – introducing a $3 late fee at a group of daycare centres in Haifa, Israel – it had the opposite effect: the late arrivals more than doubled.
In recent years, behavioural economists like Drs. Gneezy and Rustichini have begun to study how people respond to incentives using controlled experiments. Their work reveals a host of psychological effects: we’re risk averse, prone to choking when the stakes are high, and we over-value the present. Different types of incentives – financial, social or moral – can have different effects. As a result, policies often backfire.
In the daycare study, the late penalty failed because it took an important social cost – the desire not to impose on others – and replaced it with a financial cost that parents found quite affordable. Instructors often use a similar policy with grades, deducting five or ten percent of the mark from late assignments. Could this have the perverse effect of encouraging procrastination?
The comparison between grades and financial incentives is not far-fetched. After all, students work for grades, and they trade them for scholarships and a spot in graduate school. Grading practices affect which courses students take and how much they enjoy them. So, do students treat grades like money?
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