Why Does Voluntary Participation Distort Educational Outcomes? An Institutional Analysis of School Based Decision Making Programs in India

Educational programs that aim to improve decision making and financial understanding are often designed around voluntary participation. The underlying assumption is that students who are interested, motivated, or capable will naturally choose to take part, allowing programs to identify talent and generate meaningful engagement. However, large scale evaluations of educational and financial literacy initiatives frequently report modest or uneven impact even when curriculum quality and institutional intent are strong. This raises a prior and less examined question: whether participation rules themselves influence who enters these programs and whose ability becomes visible.This paper examines how voluntary and mandatory participation structures shape selection, competition, and observed outcomes in school based decision making programs. The analysis draws on direct involvement in two contrasting initiatives conducted in an Indian secondary school between 2023 and 2025. The first was an eligibility based mandatory financial literacy program implemented through quizzes and structured group discussions. The second was a voluntary skill based competition that relied entirely on opt in participation. Rather than evaluating curriculum content or long term learning outcomes, the paper focuses on participation funnels, competition density, and patterns of performance that emerged under different institutional designs.Across both cases, participation appeared to impose non academic costs that varied significantly across students. These included fear of public underperformance, social exposure, and reputational risk. In the voluntary setting, students with low perceived cost of participation were more likely to opt in, while several capable students chose not to participate despite demonstrating skill in informal settings. As a result, competition was uneven and observed performance reflected the characteristics of those willing to enter rather than the underlying distribution of ability. In contrast, mandatory participation removed the initial decision to opt in and shifted attention toward performance once the activity began. Although not all participants were equally engaged, competition was deeper, outcomes were less predictable, and several strong performers emerged from students who had not previously been identified as high achievers.The comparison suggests that voluntary participation can unintentionally select for visibility rather than ability, while mandatory participation within a defined group can reduce self selection bias and allow latent capability to surface. This does not imply that compulsory participation is universally preferable or that motivation is irrelevant. Instead, it highlights how assumptions about rational self selection can fail in real educational contexts where social dynamics and perceived costs shape behavior.