Management Impact in an Experimental Intergroup Contest

The paper presents experimental evidence on the impact of managers and their incentives on the behavior of group members in intergroup contests. I find that members follow the nonbinding investment recommendations of their group manager in particular if the managers payoff does not depend on the members behavior. Different incentives schemes induce the managers to lead the groups into different directions but incentivized managers are less capable of inducing very high or low contest investments.