Leadership by Confidence in Teams

24 Pages Posted: 24 Sep 2008 Last revised: 20 Oct 2008

See all articles by Hajime Kobayashi

Hajime Kobayashi

Kansai University - Faculty of Economics

Hideo Suehiro

Kobe University

Date Written: July 7, 2008

Abstract

We study endogenous signaling in teams by analyzing a team production problem with endogenous timing. Each agent of the team is privately endowed with some level of confidence about team productivity. Each of them must then commit a level of effort in one of two periods. At the end of each period, each agent observes his partner's move in this period. Both agents are rewarded by a team output determined by team productivity and total invested effort. Each agent must personally incur the cost of effort that he invested.

We show a sufficient condition under which sender and receiver emerge endogenously in a stable equilibrium. This result implies that leadership in teams emerges through the leader's signaling incentives only based on his confidence.

Keywords: Endogenous Signaling, Team Production, Leadership

JEL Classification: C72, D82

Suggested Citation

Kobayashi, Hajime and Suehiro, Hideo, Leadership by Confidence in Teams (July 7, 2008). Available at SSRN: https://ssrn.com/abstract=1272691 or http://dx.doi.org/10.2139/ssrn.1272691

Hajime Kobayashi (Contact Author)

Kansai University - Faculty of Economics ( email )

3-3-35 Yamatecho
Suita, Osaka, 564-8680
Japan

Hideo Suehiro

Kobe University

2-1, Rokkodai-cho, Nada-ku
Kobe, 657-8501, 657-8501
Japan

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