The Impact of Behavioral Nudging in Economic Theory on High School Grading Policies and Student Achievement

Abstract

This research paper examines the implications of neoclassical economic theory and behavioral economic nudges on high school teachers' grading policies and the motivation and academic achievement of students. I further develop the literature in education economics to investigate various grading policies chosen by teachers and the impact on student motivation and educational outcomes. I highlight teacher preferences which include a traditional grading policy or five-point system, using the letters A-E/F. On the other hand, students prefer grading systems that evaluate what they are learning, allow for effort-based achievement, and consider classroom participation, as opposed to homework and exam scores alone. I examine the benefits and detriments of different grading policies within my high school, Menlo-Atherton High School including traditional grading, standards-based grading (SBG) and pass-fail grading.  First, I review the current literature and analyze the major differences between the approaches of neoclassical versus behavioral economics including nudges. Specifically, I examine factors that contribute to a student’s academic achievement and review the literature on grading. Second, I focus on student behavior and motivation that help to incentivize greater academic achievement. Third, I interview several teachers to characterize their grading policy and overall student motivation.  Last, I compare the student and teacher findings and the associated behavior and motivation. Overall, my findings and analysis appear to support directionally that a new educational policy focused on a standards-based grading (SBG) policy combined with various behavioral nudges impact student decisions, motivate high school students, and improve educational outcomes.