Abstract:This paper analyses grading competition between instructors of elective courses when students shop for high course scores, the instructors maximize class size, and the school imposes a ceiling on mean course scores to limit grade inflation. We demonstrate that curriculum flexibility (more listed courses or fewer required courses) intensifies the competition: in particular, top scores increase. To tame incentives to provide large scores, we suppose that the school additionally introduces a top‐score grading pol… Show more
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