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Leadership, cheap talk and really cheap talk

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Author Info

  • Levy, David M.
  • Padgitt, Kail
  • Peart, Sandra J.
  • Houser, Daniel
  • Xiao, Erte

Abstract

Previous research offers compelling evidence that leaders suffice to effect efficiency-enhancements on cooperation, yet the source of this effect remains unclear. To investigate whether leadership effects can be attributed exclusively to the common information that leaders provide to a group, irrespective of the source of that information, we design a public goods game in which non-binding contribution suggestions originate with either a human or computer leader. We find that group members' decisions are significantly influenced by human leaders' non-binding contribution suggestions, both when the leader is elected as well as when the leader is randomly chosen. A leader's suggestion becomes an upper bound for group member's contributions. Identical suggestions do not impact the group members' decisions when they originate with a computer, thus supporting to the view that information provided by human leaders is uniquely able to establish welfare-enhancing norms.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 77 (2011)
Issue (Month): 1 (January)
Pages: 40-52

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Handle: RePEc:eee:jeborg:v:77:y:2011:i:1:p:40-52

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Web page: http://www.elsevier.com/locate/jebo

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Cited by:
  1. Jordi Brandts & David J. Cooper & Roberto A. Weber, 2014. "Legitimacy, Communication and Leadership in the Turnaround Game," BELIS Working Papers 2014-01, BELIS, Istanbul Bilgi University.
  2. Emrah Arbak & Marie-Claire Villeval, 2013. "Voluntary leadership: motivation and influence," Social Choice and Welfare, Springer, vol. 40(3), pages 635-662, March.
  3. Stefan Krabel & Alexander Schacht, 2012. "The Influence of Leadership on Academic Scientists' Propensity to Commercialize Research Findings," Jena Economic Research Papers 2012-027, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Jordi Brandts & David J. Cooper & Roberto A. Weber, 2014. "Legitimacy, Communication and Leadership in the Turnaround Game," Working Papers 755, Barcelona Graduate School of Economics.
  5. Emrah Arbak & Marie Claire Villeval, 2013. "Voluntary Leadership: Selection and Influence," Post-Print halshs-00664830, HAL.
  6. Keuschnigg, Marc & Schikora, Jan, 2014. "The dark side of leadership: An experiment on religious heterogeneity and cooperation in India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 19-26.
  7. Jordi Brandts & David J. Cooper & Roberto A. Weber, 2014. "Legitimacy, Communication and Leadership in the Turnaround Game," UFAE and IAE Working Papers 947.14, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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