Gaming Over: Quasi-Experimental Evidence on the Effect of Competition on Gaming

Does competition increase gaming? Gaming is a well-known problem in the public sector, and a strong logic suggests that increased competition should lead to more gaming. However, issues with reverse causality challenge research aiming to obtain causal estimates of the impact of competition. To deal with this problem, we exploit an exogenously induced change in competition in Danish schools. Following a municipal consolidation reform, some public schools were exposed overnight to increased competition. Using difference-in-differences models to estimate the effect of competition on gaming, we find no evidence of teacher-assessed grade inflation post-reform. Although gaming is widespread, particularly in public schools, increased competition is not bound to exacerbate the problem.