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Other-Regarding Preferences and Leadership Styles

Listed author(s):
  • Kocher, Martin G.

    ()

    (University of Munich)

  • Pogrebna, Ganna

    ()

    (University of Warwick)

  • Sutter, Matthias

    ()

    (Max Planck Institute for Research on Collective Goods)

We use a laboratory experiment to examine whether and to what extent other-regarding preferences of team leaders influence their leadership style in choice under risk. We find that leaders who prefer efficiency or report high levels of selfishness are more likely to exercise an autocratic leadership style by ignoring preferences of the other team members. Yet, inequity aversion has no significant impact on leadership styles. Elected leaders have a higher propensity than exogenously assigned leaders to use a democratic leadership style by reaching team consensus. Male leaders and leaders influenced by group membership tend to employ a democratic leadership style.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4080.

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Length: 59 pages
Date of creation: Mar 2009
Handle: RePEc:iza:izadps:dp4080
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  1. Guth, Werner & Levati, M. Vittoria & Sutter, Matthias & van der Heijden, Eline, 2007. "Leading by example with and without exclusion power in voluntary contribution experiments," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1023-1042, June.
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  13. Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
  14. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 269-299.
  15. Anne Marie Knott, 2001. "The Dynamic Value of Hierarchy," Management Science, INFORMS, vol. 47(3), pages 430-448, March.
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