Abstract

http://ssrn.com/abstract=1106385
 
 

References (12)



 
 

Citations (8)



 


 



Leadership, Coordination and Mission-Driven Management


Patrick Bolton


Columbia Business School - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Markus K. Brunnermeier


Princeton University - Department of Economics

Laura Veldkamp


New York University - Stern School of Business; National Bureau of Economic Research (NBER)

March 14, 2008

AFA 2009 San Francisco Meetings Paper

Abstract:     
What makes a good leader? A good leader is able to coordinate his followers around a credible mission statement, which communicates the future course of action of the organization. In practice, leaders learn about the best course of action for the organization over time. While learning helps improve the organization's goals it also creates a time-consistency problem. Leader overconfidence is a valuable attribute in such a setting, since it slows down the leader's learning and thus improves the credibility of the mission statement. But overconfident leaders also inhibit communication with followers and leader overconfidence is costly when followers have sufficiently valuable signals.

Number of Pages in PDF File: 44

Keywords: leadership, CEO overconfidence, coordination games

JEL Classification: G3, C7

working papers series


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Date posted: March 17, 2008  

Suggested Citation

Bolton, Patrick and Brunnermeier, Markus K. and Veldkamp, Laura, Leadership, Coordination and Mission-Driven Management (March 14, 2008). AFA 2009 San Francisco Meetings Paper. Available at SSRN: http://ssrn.com/abstract=1106385 or http://dx.doi.org/10.2139/ssrn.1106385

Contact Information

Patrick Bolton
Columbia Business School - Department of Economics ( email )
420 West 118th Street
New York, NY 10027
United States
HOME PAGE: http://www0.gsb.columbia.edu/faculty/pbolton/

Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Markus Konrad Brunnermeier
Princeton University - Department of Economics ( email )
Bendheim Center for Finance
Princeton, NJ
United States
609-258-4050 (Phone)
609-258-0771 (Fax)
HOME PAGE: http://www.princeton.edu/¡­markus

Laura Veldkamp (Contact Author)
New York University - Stern School of Business ( email )
44 West 4th St. - Suite 7-180
New York, NY 100012
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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References:  12
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