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This study examined 1825 peer assessed assignments collected from a Coursera MOOC with the purpose of investigating the reliability and validity of peer assessment, and its perceived effects on students’ MOOC learning experience. The findings indicate that the aggregate ratings of student graders can provide grading scores that were fairly consistent and highly similar to the instructor grading scores. Student responses to a survey also show that the peer assessment activity was well received as the majority of MOOC students believed it was fair, useful, beneficial, and would recommend it to be included in future MOOC offerings. Based on the empirical results, this study concludes with a set of principles for designing and implementing peer assessment in the MOOC context.