Incentivizing Good Grades: A Boost to Academic Performance

1. Risk aversion: Students chose easier courses or avoided challenging subjects.
2. Cheating inflation: When grades become currency, the incentive to cut corners rises.
3. Post-reward collapse: Once the incentive ended, grades often fell below pre-incentive baselines.

One 10th grader said:
“Before, I felt like a vending machine — good grade in, money out. Now I just want to actually know the material.”

Skill Building: Rewards can help a student push through a difficult subject they might otherwise avoid.