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satt comments on A Gamification Of Education: a modest proposal based on the Universal Decimal Classification and RPG skill trees - Less Wrong
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I would think business wouldn't make the mistake of employing biased watchdogs. Let's look at the main incentives:
Businesses wan't an accurate idea of who is employable.
Schools of course want to appear to produce employable students.
Watchdogs want money.
Now, unless I'm mistaken, being bribed by schools to put them in a favorable light is a temporary bubble, liable to pop when businesses discover that they've been lied to. Watchdogs' main employers would be businesses searching for employees, as far as I'm willing to predict, and failing to successfully out-predict competing watchdogs will result in a watchdog's failure.
Fraud will happen. Humans tend to lie for short term gains. However, it's an unsustainable business model in the long run. Fear it greatly as this market is forming, but as a trend it shouldn't last.
That still seems to leave room for (1) one or more broad cycles where most of the watchdog industry grows rich off lies & bias before imploding (as happens with bubbles) or (2) a steadily growing industry with a continually replenished proportion of fraudulent watchdogs that pop into existence, make money from lies, then get swooped on (as happens with consumer fraud).
It seems as if these are generic enough problems with enough past incidences to assume studies have already occurred regarding them. Do you happen to know what the existing solution to these problems are and how effective they are?
or alternatively, how harmful the problems are, and wether an imposed solution tends to be cost effective or not.