Leadership by Confidence in Teams
AbstractWe 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10717.
Date of creation: 07 Jul 2008
Date of revision:
Endogenous Signaling; Team Production; Leadership;
Find related papers by 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-BEC-2008-09-29 (Business Economics)
- NEP-CTA-2008-09-29 (Contract Theory & Applications)
- NEP-GTH-2008-09-29 (Game Theory)
- NEP-SPO-2008-09-29 (Sports & Economics)
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