IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-16-00033.html
   My bibliography  Save this article

Loss Aversion and Student Achievement

Author

Listed:
  • David M McEvoy

    () (Appalachian State University)

Abstract

We conduct a field experiment to test if loss aversion behavior can be exploited to improve student performance in an undergraduate statistics course. In one treatment (gains), student grades were reported as points gained, and in the other treatment (losses) grades were reported as points lost. When controlling for other factors that affect student performance, we find that students in the loss treatment earned statistically higher grades than students in the gain treatment. Although preliminary, the results suggest that a simple manipulation of how grades are framed in the classroom can be a costless way to exploit loss aversion behavior and lead to higher student achievement.

Suggested Citation

  • David M McEvoy, 2016. "Loss Aversion and Student Achievement," Economics Bulletin, AccessEcon, vol. 36(3), pages 1762-1770.
  • Handle: RePEc:ebl:ecbull:eb-16-00033
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I3-P172.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Azmat, Ghazala & Iriberri, Nagore, 2010. "The importance of relative performance feedback information: Evidence from a natural experiment using high school students," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 435-452, August.
    2. Maria Apostolova-Mihaylova & William Cooper & Gail Hoyt & Emily C. Marshall, 2015. "Heterogeneous gender effects under loss aversion in the economics classroom: A field experiment," Southern Economic Journal, Southern Economic Association, vol. 81(4), pages 980-994, April.
    3. Roland G. Fryer, 2011. "Financial Incentives and Student Achievement: Evidence from Randomized Trials," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1755-1798.
    4. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1039-1061.
    5. Joshua Angrist & Victor Lavy, 2009. "The Effects of High Stakes High School Achievement Awards: Evidence from a Randomized Trial," American Economic Review, American Economic Association, vol. 99(4), pages 1384-1414, September.
    6. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    7. Roland G. Fryer, 2013. "Teacher Incentives and Student Achievement: Evidence from New York City Public Schools," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 373-407.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:ecoedu:v:64:y:2018:i:c:p:313-342 is not listed on IDEAS
    2. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.

    More about this item

    Keywords

    loss aversion; field experiment; grades; behavioral economics;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • I2 - Health, Education, and Welfare - - Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-16-00033. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.