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Understanding Leadership A Coordination Theory

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  • Nicolai J. Foss

Abstract

Important aspects of leadership behavior can be rendered intelligible through a focus on coordination games. The concept of common knowledge is shown to be particularly important to understanding leadership. Thus, leaders may establish common knowledge conditions and assist the coordination of strategies in this way, or make decisions in situations where coordination problems persist in spite of common knowledge.

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File URL: http://www3.druid.dk/wp/19990003.pdf
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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 99-3.

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Date of creation: 1999
Date of revision:
Handle: RePEc:aal:abbswp:99-3

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Web page: http://www.druid.dk/

Related research

Keywords: Game theory; management; organization;

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References

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  1. Rubinstein, Ariel, 1989. "The Electronic Mail Game: Strategic Behavior under "Almost Common Knowledge."," American Economic Review, American Economic Association, vol. 79(3), pages 385-91, June.
  2. Richard N. Langlois & Nicolai J. Foss, 1997. "Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization," DRUID Working Papers 97-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-95, December.
  4. Radner, Roy, 1996. "Bounded Rationality, Indeterminacy, and the Theory of the Firm," Economic Journal, Royal Economic Society, vol. 106(438), pages 1360-73, September.
  5. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  6. AUMANN, Robert J., . "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP -167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 141-61, Spring.
  8. John Geanakoplos, 1992. "Common Knowledge," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 53-82, Fall.
  9. Farrell, Joseph, 1988. "Communication, coordination and Nash equilibrium," Economics Letters, Elsevier, vol. 27(3), pages 209-214.
  10. Robert J Aumann, 1999. "Agreeing to Disagree," Levine's Working Paper Archive 512, David K. Levine.
  11. Mark Casson, 1994. "Why are Firms Hierarchical?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 47-76.
  12. Field, Alexander James, 1984. "Microeconomics, Norms, and Rationality," Economic Development and Cultural Change, University of Chicago Press, vol. 32(4), pages 683-711, July.
  13. Foss, Nicolai Juul, 1993. "Theories of the Firm: Contractual and Competence Perspectives," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 127-44, May.
  14. Galesloot, Bob M. & Goyal, Sanjeev, 1997. "Costs of flexibility and equilibrium selection," Journal of Mathematical Economics, Elsevier, vol. 28(3), pages 249-264, October.
  15. Aumann, Robert & Brandenburger, Adam, 1995. "Epistemic Conditions for Nash Equilibrium," Econometrica, Econometric Society, vol. 63(5), pages 1161-80, September.
  16. Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812, September.
  17. Nicolai Foss, 1999. "Research in the Strategic Theory of the Firm: 'Isolationism' and 'Integrationism'," Journal of Management Studies, Wiley Blackwell, vol. 36(6), pages 725-755, November.
  18. Crawford, Vincent P & Haller, Hans, 1990. "Learning How to Cooperate: Optimal Play in Repeated Coordination Games," Econometrica, Econometric Society, vol. 58(3), pages 571-95, May.
  19. Andrew Colman, 1997. "Salience and focusing in pure coordination games," Journal of Economic Methodology, Taylor & Francis Journals, vol. 4(1), pages 61-81.
  20. Witt, Ulrich, 1997. ""Lock-in" vs. "critical masses" -- Industrial change under network externalities," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 753-773, October.
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Citations

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Cited by:
  1. repec:hal:journl:halshs-00178474 is not listed on IDEAS
  2. Kirsten Foss & Nicolai J. Foss, 1999. "Organizing Economic Experiments The Role of Firms," DRUID Working Papers 99-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. Patrick Cohendet & Frédéric Creplet & Morad Diani & Olivier Dupouët & Eric Schenk, 2004. "Matching Communities and Hierarchies within the Firm," Journal of Management and Governance, Springer, vol. 8(1), pages 27-48, March.
  4. repec:hal:cesptp:halshs-00178474 is not listed on IDEAS
  5. Anastasios Koukoumelis & M. Vittoria Levati & Johannes Weisser, 2009. "Leading by Words: A Voluntary Contribution Experiment With One-Way Communication," Jena Economic Research Papers 2009-106, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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