led to insights that improved the study, as did comments from several seminar participants. We are indebted to Mr. Sean Wong, Managing Director of Wanlida Group, for allowing us to use his factory as our experimental lab. We gratefully acknowledge the financial support of Hong Kong Research Grant Council. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.