In actuality, the competition became quite stiff between various sales staff as it was the sales leaders in each category that were to receive bonuses, rather then incentives being given to all staff that reached certain targets. This meant that it was in each sales person's best individual interests to hinder sales from others and compete for certain specific sales. The ultimate result was a more embittered workforce and a somewhat less successful organization that did not see at all the type of growth in sales that had been expected at the onset of the incentive program nor that could have been achieved through the design and implementation of a less competitive and more effective program. Pitting the goals of individuals within an organization against each other is almost never in the best interests if the organization or of the majority of the individuals within that organization as competitions that create this type of goal opposition necessarily create more losers then they do winners, and this also translates to more losses (or at least, to reduced benefits) for the organization as a whole (Shuttleworth 2006; Shepherd 2010; Segerstrom & Nes 2006). At the same time, there are those individuals that thrive of this type of competition and will do enormously well in such scenarios often at the even greater detriment of the organization and other individuals within it (Segerstrom & Nes 2006). Just as in the hypothetical scenario, game theory demonstrates that...

Certainly, manager B. could have brought their suggestions to a superior's attention and could have received recognition and compensation for their contributions to manager a's project. In addition, should someone else supply the information manager B. should have supplied, manager B. would likely be penalized. Game theory only woks with finite and simple conditions, and these rarely exist in the real world.
References

Levine, D. (2010). What is game theory? Accessed 2 December 2010. http://levine.sscnet.ucla.edu/general/whatis.htm

Ross, D. (2010). Game theory. Accessed 2 December 2010. http://plato.stanford.edu/entries/game-theory/

Segerstorm, S. & Nes, L. (2006). When Goals Conflict but People Prosper: The Case of Dispositional Optimism. Journal of research in personality 40(5): 675-93.

Shepherd, P. (2010). The Evolution of Goal Conflict Structures. Accessed 2 December 2010. http://www.trans4mind.com/spiritual/goals.htm

Shuttleworth, M. (2006). Conflicting goals create tension in communities. Accessed 2 December 2010. http://www.markshuttleworth.com/archives/56