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Gaming against Managers in Incentive Systems: Experimental Results with Chinese Students and Chinese Managers

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Author Info
David J. Cooper et al.
Abstract

We examine strategic interactions between firms and planners in China, comparing behavior between: (i) students and managers with field experience with this situation, (ii) standard versus increased monetary incentives, and (iii) sessions conducted "in context," making explicit reference to interactions between planners and managers, and those without any such references. The dynamics of play are similar across treatments with play only gradually, and incompletely, converging on a pooling equilibrium. A fivefold increase in incentives significantly increases initial levels of strategic play. Games played in context generated greater levels of strategic play for managers, with minimal impact on students.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 89 (1999)
Issue (Month): 4 (September)
Pages: 781-804
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Handle: RePEc:aea:aecrev:v:89:y:1999:i:4:p:781-804

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Penny Burns, 1985. "Experience and Decision Making: A Comparison of Students and Businessmen in a Simulated Progressive Auction," Framed Field Experiments 0016, The Field Experiments Website.
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  4. Partow, Z. & Schotter, A., 1993. "Does Game Theory Predict Well for the Wrong Reasons: An Experimental Investigation," Working Papers 93-46, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  5. Gibbons, Robert, 1987. "Piece-Rate Incentive Schemes," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages 413-29, October. [Downloadable!] (restricted)
  6. Grossman, Sanford J. & Perry, Motty, 1986. "Perfect sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 39(1), pages 97-119, June. [Downloadable!] (restricted)
  7. Dearden, J. & Ickes, B.W. & Samuelson, L., 1988. "To Innovate Or Not To Innovate: Incentives And Innovation In Hierarchies," Papers 9-88-4, Pennsylvania State - Department of Economics.
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  8. Cooper, David J & Garvin, Susan & Kagel, John H, 1997. "Adaptive Learning vs. Equilibrium Refinements in an Entry Limit Pricing Game," Economic Journal, Royal Economic Society, vol. 107(442), pages 553-75, May. [Downloadable!] (restricted)
  9. Kroll, Yoram & Levy, Haim & Rapoport, Amnon, 1988. "Experimental Tests of the Separation Theorem and the Capital Asset Pricing Model," American Economic Review, American Economic Association, vol. 78(3), pages 500-519, June. [Downloadable!] (restricted)
  10. Brandts, Jordi & Holt, Charles A, 1992. "An Experimental Test of Equilibrium Dominance in Signaling Games," American Economic Review, American Economic Association, vol. 82(5), pages 1350-65, December. [Downloadable!] (restricted)
  11. Stahl Dale O., 1993. "Evolution of Smartn Players," Games and Economic Behavior, Elsevier, vol. 5(4), pages 604-617, October. [Downloadable!] (restricted)
  12. Freixas, Xavier & Guesnerie, Roger & Tirole, Jean, 1985. "Planning under Incomplete Information and the Ratchet Effect," Review of Economic Studies, Blackwell Publishing, vol. 52(2), pages 173-91, April. [Downloadable!] (restricted)
  13. Keren, Michael, 1982. "The ministry, plan changes, and the ratchet in planning," Journal of Comparative Economics, Elsevier, vol. 6(4), pages 327-342, December. [Downloadable!] (restricted)
  14. Chaudhuri, Ananish, 1998. "The ratchet principle in a principal agent game with unknown costs: an experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 37(3), pages 291-304, November. [Downloadable!] (restricted)
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  15. Granick, David, 1980. "The ministry as the maximizing unit in Soviet industry," Journal of Comparative Economics, Elsevier, vol. 4(3), pages 255-273, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fernando Aguiar & Pablo Brañas-Garza & Ramón Cobo-Reyes & Natalia Jimenez & Luis Miller, 2009. "Are women expected to be more generous?," Experimental Economics, Springer, vol. 12(1), pages 93-98, March. [Downloadable!] (restricted)
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  2. Gari Walkowitz & Sebastian J. Goerg, 2007. "The Janus Face of Cooperation - An Intra- and Cross-Cultural Review," Bonn Econ Discussion Papers bgse5_2007, University of Bonn, Germany. [Downloadable!]
  3. Montmarquette, Claude & Rullière, Jean-Louis & Villeval, Marie-Claire & Zeiliger, Romain, 2004. "Redesigning Teams and Incentives in a Merger: An Experiment with Managers and Students," IZA Discussion Papers 1057, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Gary Charness & Antonio Cabrales, 2008. "Optimal Contracts With Team Production And Hidden Information: An Experiment," University of California at Santa Barbara, Economics Working Paper Series 12-08, Department of Economics, UC Santa Barbara. [Downloadable!]
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  5. Armin Falk & Thomas Dohmen & Uwe Sunde, 2009. "Kontrolliert und repräsentativ: Beispiele zur Komplementarität von Labor- und Felddaten," SOEPpapers 168, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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  6. David J. Cooper & John H. Kagel, 2005. "Are Two Heads Better Than One? Team versus Individual Play in Signaling Games," American Economic Review, American Economic Association, vol. 95(3), pages 477-509, June. [Downloadable!]
  7. Vivi Alatas & Lisa Cameron & Ananish Chaudhuri & Nisvan Erkal & Lata Gangadharan, 2006. "Subject Pool Effects in a Corruption Experiment: A Comparison of Indonesian Public Servants and Indonesian Students," Department of Economics - Working Papers Series 975, The University of Melbourne. [Downloadable!]
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  8. Robert Hoffmann & Jin-Yee Tee, 2003. "Adolescent-Adult Interactions and Culture in the Ultimatum Game," Occasional Papers 4, Nottingham University Business School. [Downloadable!]
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  9. Gary Charness & Marie Claire Villeval & Antonio Cabrales, 2009. "Hidden Information, Bargaining Power and Efficiency: An Experiment," Working Papers 2009-08, FEDEA. [Downloadable!]
  10. Klaus Abbink & Heike Hennig-Schmidt, 2002. "Neutral versus Loaded Instructions in a Bribery Experiment," Bonn Econ Discussion Papers bgse23_2002, University of Bonn, Germany. [Downloadable!]
  11. Juan Camilo Cardenas & Elinor Ostrom, 2004. "What do people bring into the game? experiments in the field about cooperation in the commons," Artefactual Field Experiments 0023, The Field Experiments Website. [Downloadable!]
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  12. Peter Dürsch & Jörg Oechssler & Radovan Vadovic, 2008. "Sick Pay Provision in Experimental Labor Markets," Working Papers 0476, University of Heidelberg, Department of Economics, revised Oct 2008. [Downloadable!]
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  13. Paul Healy & John Ledyard & Charles Noussair & Harley Thronson & Peter Ulrich & Giulio Varsi, 2007. "Contracting inside an organization: An experimental study," Experimental Economics, Springer, vol. 10(2), pages 143-167, June. [Downloadable!] (restricted)
  14. Fiore, Annamaria, 2009. "Experimental Economics: Some Methodological Notes," MPRA Paper 12498, University Library of Munich, Germany. [Downloadable!]
  15. Glenn W. Harrison, 2005. "Field Experiments and Control," Artefactual Field Experiments 0049, The Field Experiments Website. [Downloadable!]
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