Control variables. We statistically controlled the effects of five variables on our model. First, we took into account the percentage of rooms of a hotel property exceeding the average number of rooms available at two local competitors for a measure of size vis-a` -vis competitors, as that might affect relative room rates. Second, the average tenure of managers on the management team was included, as it 1244 Academy of Management Journal December might affect the level of familiarity and interaction among team members. Third, we controlled for the number of respondents in each team. Given the importance of demographic diversity variables in management teams research (Finkelstein & Hambrick, 1996), we also included a measure of educational background heterogeneity. Finally, we also took into account the proportion of managers in a team who had received hotel management education as another demographic measure.