Other-Regarding Preferences and Leadership Styles
Martin G. Kocher
Ludwig-Maximilians-Universität München - Faculty of Economics; Göteborg University - School of Business, Economics and Law; Queensland University of Technology - School of Economics and Finance
University of Innsbruck; University of Gothenburg - Department of Economics; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 4080
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.
Number of Pages in PDF File: 59
Keywords: leadership style, other-regarding preferences, unobserved heterogeneity
JEL Classification: C91, C92, D70, D81
Date posted: March 30, 2009
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