Risk Preference and Student Behavior on Multiple-Choice Exams

This paper modifies standard multiple-choice form of assessment by adding an intertemporal bonus point mechanism in the assessment. The modified mechanism enables us to uncover traditionally unobserved student behavior and provides insights into strategic behavior of students. Based on panel data on students enrolled in an economics course, our results suggest that risk preference plays an important role in explaining student strategic behavior on multiple-choice exams. In addition, the findings shed light on the possibilities to enhance student performance through improvements on their learning habits based on their risk preferences.