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Leadership by Confidence in Teams

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  • Kobayashi, Hajime
  • Suehiro, Hideo

Abstract

We study endogenous signaling in teams by analyzing a team production problem with endogenous timing. Each agent of the team is privately endowed with some level of confidence about team productivity. Each of them must then commit a level of effort in one of two periods. At the end of each period, each agent observes his partner's move in this period. Both agents are rewarded by a team output determined by team productivity and total invested effort. Each agent must personally incur the cost of effort that he invested. We show a sufficient condition under which sender and receiver emerge endogenously in a stable equilibrium. This result implies that leadership in teams emerges through the leader's signaling incentives only based on his confidence.

Suggested Citation

  • Kobayashi, Hajime & Suehiro, Hideo, 2008. "Leadership by Confidence in Teams," MPRA Paper 10717, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10717
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    References listed on IDEAS

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    More about this item

    Keywords

    Endogenous Signaling; Team Production; Leadership;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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