Leadership based on asymmetric information

A-Tier
Journal: RAND Journal of Economics
Year: 2010
Volume: 41
Issue: 1
Pages: 35-63

Authors (2)

Mana Komai (not in RePEc) Mark Stegeman (University of Arizona)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Rational players, unconstrained by contracts or formal authority, choose to follow a better‐informed leader, whose action reveals part of her information. If the leader satisfies a credibility condition, then the unique nondegenerate equilibrium solves distinct shirking and coordination problems and achieves the first best. If credibility fails, as is more likely for a large organization, then followers ignore the leader, and equilibria are very inefficient. Appointing multiple leaders, or a high‐cost leader, can restore credibility. If players invest privately in information, then a leader often appears endogenously. The equilibrium concept is an original extension of sequential equilibrium to continuous states.

Technical Details

RePEc Handle
repec:bla:randje:v:41:y:2010:i:1:p:35-63
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29