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Optimal School Design

Author

Listed:
  • Jacopo Bizzotto

    (Oslo Business School - OsloMet)

  • Adrien Vigier

    (University of Oxford - Department of Economics)

Abstract

We consider a population of students with heterogeneous characteristics, and examine the dual design problem consisting of (a) allocating students to schools and (b) choosing how to grade students in school, with a view to optimizing students' incentives to work hard. We show that any optimal school design exhibits stratification, and more lenient grading at the top-tier schools than at the bottom-tier schools. Our results highlight a novel trade-off between the size of the pie and its equal division in the context of school design.

Suggested Citation

  • Jacopo Bizzotto & Adrien Vigier, 2021. "Optimal School Design," Working Papers 202103, Oslo Metropolitan University, Oslo Business School.
    • Handle: RePEc:oml:wpaper:202103
    DOI: 10.2139/ssrn.3877063
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    More about this item

    Keywords

    Education; Moral Hazard; Grading; Peer Effects; Stratification;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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