Can leagues mitigate the demoralization effect of rank feedback? A randomized controlled trial

In a randomized controlled trial involving hundreds of university students, we provide relative performance feedback specifically designed to reduce low performers’ demoralization, by dynamically assigning students to small leaderboard groups that share a similar score in a semester-long online assignment. Treated students appear 2.6% more likely to go beyond the call-of-duty on their assignment by mid-semester. For low performers, this translates in 0.27 SDs higher exam grades, more stress, increased effort and lower procrastination. High performers are happier, procrastinate less and overachieve in the assignment on which they are ranked, but ultimately also score 0.25 SDs lower exam grades.