“…Our finding that performance-based goals are ineffective stands in stark contrast to a literature in educational psychology that uses non-causal correlations to suggest that performance-based goals can motivate college students (see, e.g., Zimmerman and Bandura, 1994, Harackiewicz et al, 1997, Elliot and McGregor, 2001, Barron and Harackiewicz, 2003, Linnenbrink-Garcia et al, 2008and Darnon et al, 2009. 5 A handful of papers in psychology use experiments to study the effects of self-set goals on the behavior of college students (Morgan, 1987;Latham and Brown, 2006;Morisano et al, 2010;Chase et al, 2013); however, in contrast to our analysis, these studies rely on small samples, do not study the impact of performance-based goals on performance or 4 Our overconfidence explanation implies that students have incorrect beliefs about the best way to increase their academic achievement. This is consistent with the explanation given by Allan and Fryer (2011) for why performance-based financial incentives appear less effective than task-based financial incentives.…”