How do commission rates influence a firm's success? Statistical analysis of a corporate strategy simulation experiment

The purpose of this paper is to analyse the relationship between commission rates and a firm's success within a corporate strategic planning simulation experiment. Teams of students are assigned to the role of managers of a firm within a competitive market situation. They have the task to experience the complex situation in which they act as managers to increase the performance of a firm by setting specific parameters. Our most interesting parameter is the commission rate. The Marketing Game considers a reasonably complex and realistic situation for the participants. We examine to what extent subjects succeed in increasing a firm's turnover and profit by varying the commission rates.