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Norms and the Evolution of Leaders Followership

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  • Antonio Cabrales
  • Esther Hauk

Abstract

In this paper, we model the interaction between leaders, their followers and crowd followers in a coordination game with local interaction. The steady states of a dynamic best-response process can feature a coexistence of Pareto-dominant and risk-dominant actions in the population. The existence of leaders and their followers, along with the local interaction, which leads to clustering, is crucial for the survival of the Pareto-dominant actions. The evolution of leader and crowd follower- ship shows that leader followership can also be locally stable around Pareto-dominant leaders. The paper answers the questions of which leader should be removed and how to optimally place leaders in the network to enhance payoff-dominant play.

Suggested Citation

  • Antonio Cabrales & Esther Hauk, 2023. "Norms and the Evolution of Leaders Followership," Working Papers 1381, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1381
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    More about this item

    Keywords

    networks; Leadership; norms; local interaction;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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