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Dear Participant,

Thank you for participating in today’s experiment. Please switch off your cell phone, do not talk to other participants, and do not communicate with others using the PC. If you have any questions, please raise your hand and the instructor will come to you.

In this experiment, you have been randomly assigned to a role of the manager of a technology company. The company is based in Denmark and has a wide range of its own locally designed and manufactured products as well as a large number of customers and retailers. Since the company was established the revenue has been slowly growing and according to the latest analysis is expected to reach the peak any time soon. However, its current performance is mediocre and the board is pressuring you to invest in the current business units in a way that would ensure that the company’s growth continues and its place in the market is stable. However, you are only allocating resources to the two divisions, Division A and Division B, which will further allocate the received resources and you will not have influence on that. Additionally, you will be aware after each period of time what have they done and what is the performance of the business units and the divisions.

Thus, you, as the manager, have to make some important decisions that can influence the company’s performance outcomes.

Figur 3: Hierarchical setup of the firm.

Please, press ‘Next’ to continue with instructions.

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