Gaming against managers in incentive systems: Experimental results with Chinese students and Chinese managers

We examine strategic interactions between firms and planners in China, comp aring behavior between: (i) students and managers with field experience wit h this situation, (ii) standard versus increased monetary incentives, and ( iii) sessions conducted "in context, " making explicit reference to interac tions between planners and managers, and those without any such references. The dynamics of play are similar across treatments with play only graduall y, and incompletely, converging on a pooling equilibrium. A fivefold increa se in incentives significantly increases initial levels of strategic play. Games played in context generated greater levels of strategic play for mana gers, with minimal impact on students. (JEL D23, D8, C92).