Other-Regarding Preferences and Leadership Styles

59 Pages Posted: 30 Mar 2009

See all articles by Martin G. Kocher

Martin G. Kocher

University of Vienna

Ganna Pogrebna

University of Bonn - Institute of Business Administration I

Matthias Sutter

Max Planck Institute for Research on Collective Goods

Abstract

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.

Keywords: leadership style, other-regarding preferences, unobserved heterogeneity

JEL Classification: C91, C92, D70, D81

Suggested Citation

Kocher, Martin G. and Pogrebna, Ganna and Sutter, Matthias, Other-Regarding Preferences and Leadership Styles. IZA Discussion Paper No. 4080, Available at SSRN: https://ssrn.com/abstract=1369826 or http://dx.doi.org/10.2139/ssrn.1369826

Martin G. Kocher (Contact Author)

University of Vienna ( email )

Bruenner Strasse 72
Vienna, Vienna 1090
Austria

Ganna Pogrebna

University of Bonn - Institute of Business Administration I ( email )

Adenauerallee 24-42
D-53113 Bonn
Germany

Matthias Sutter

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany