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Toward an Economic Theory of Leadership: Leading by Example

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  • Ben Hermalin

Abstract

This paper explores leadership within organizations. Leadership is distinct from authority because following a leader is a voluntarty rather than coerced activity of the followers. This paper considers how a leader induces rational followers to follow her in situations when the leader has incentives to mislead her followers.

Suggested Citation

  • Ben Hermalin, 1996. "Toward an Economic Theory of Leadership: Leading by Example," Working Papers _006, University of California at Berkeley, Haas School of Business.
    • Handle: RePEc:wop:calbha:_006
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    File URL: http://haas.berkeley.edu/~hermalin/leader.pdf
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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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