It's Not Always the Leader's Fault: How Informed Followers Can Undermine Efficient Leadership

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Tác giả: Panagiotis Kyriazis, Edmund Lou

Ngôn ngữ: eng

Ký hiệu phân loại: 206.1 Leaders and their work

Thông tin xuất bản: 2023

Mô tả vật lý:

Bộ sưu tập: Báo, Tạp chí

ID: 197813

Coordination facilitation and efficient decision-making are two essential components of successful leadership. In this paper, we take an informational approach and investigate how followers' information impacts coordination and efficient leadership in a model featuring a leader and a team of followers. We show that efficiency is achieved as the unique rationalizable outcome of the game when followers possess sufficiently imprecise information. In contrast, if followers have accurate information, the leader may fail to coordinate them toward the desired outcome or even take an inefficient action herself. We discuss the implications of the results for the role of leaders in the context of financial fragility and crises.
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