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A theory of decisive leadership

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  • Bernheim, B. Douglas
  • Bodoh-Creed, Aaron L.

Abstract

We present a theory that rationalizes voters' preferences for decisive leaders. Greater decisiveness entails an inclination to reach decisions more quickly conditional on fixed information. Although speed can be good or bad, agency problems between voters and politicians create preferences among voters for leaders who perceive high costs of delay and have little uncertainty about how to weigh different aspects of the decision problem, and hence who make decisions more rapidly than typical voters. Officials who aspire to higher office therefore signal decisiveness by accelerating decisions. In elections, candidates with reputations for greater decisiveness prevail despite making smaller compromises, and therefore earn larger rents from office holding.

Suggested Citation

  • Bernheim, B. Douglas & Bodoh-Creed, Aaron L., 2020. "A theory of decisive leadership," Games and Economic Behavior, Elsevier, vol. 121(C), pages 146-168.
    • Handle: RePEc:eee:gamebe:v:121:y:2020:i:c:p:146-168
    DOI: 10.1016/j.geb.2020.01.013
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    References listed on IDEAS

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    1. B. Douglas Bernheim & Sergei Severinov, 2003. "Bequests as Signals: An Explanation for the Equal Division Puzzle," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 733-764, August.
    2. Timothy Besley & Stephen Coate, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 85-114.
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    4. Kelman, Steven & Sanders, Ronald & Pandit, Gayatri & Taylor, Sarah, 2014. "Tell It Like It Is: Groupthink, Decisiveness, and Decision-Making among U.S. Federal Subcabinet Executives," Working Paper Series rwp14-039, Harvard University, John F. Kennedy School of Government.
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    Cited by:

    1. Bernheim, B. Douglas & Bodoh-Creed, Aaron L., 2023. "Pervasive signaling," Theoretical Economics, Econometric Society, vol. 18(1), January.

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