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Examining grade loss aversion – the importance of reference points

Sudipta Roy and Caleb Lewis

Education Economics, 2024, vol. 32, issue 4, 510-522

Abstract: Goal setting and grade loss aversion have individually been found to be effective motivators for student performance. We combine these two strategies to investigate, in a university setting, the effectiveness of grade endowment within a goal-setting framework. Our participants set grade goals which some must earn the traditional way, thus framed as ‘gains’, while others are awarded their target grade upfront, thus framed as ‘losses’. We find a positive impact of goal setting on student performance. We also find that the effect of grade goals framed as ‘losses’ is numerically, but not statistically, greater than those framed as ‘gains’.

Date: 2024
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DOI: 10.1080/09645292.2023.2239529

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