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Zvi comments on Defeating Ugh Fields In Practice - Less Wrong
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The one truly massive drawback to this is it would strongly encourage students of little means to pursue courses of study populated by easy graders. It's my experience that more practical courses of study, like Accounting, Engineering, and hard sciences tend to be much harder to succeed in than, say, Art History or English Literature. So, while a good idea, this may nudge students towards academic tracks with lower expected earnings attached to them.
Reward grades more and students will respond. The fact that we are so worried about small amounts of money causing large distortions in behavior is a sign of how powerful we expect this incentive to be. If maximizing your grades is not a good way to learn then that is a sign we need to be evaluating students on a different metric, presumably one that rewards difficulty.