Coordinating Resistance Through Communication and Repeated Interaction

31 Pages Posted: 25 Feb 2014

See all articles by Timothy N. Cason

Timothy N. Cason

Purdue University - Krannert School of Management

Vai‐Lam Mui

Monash University

Date Written: February 2014

Abstract

Successful deterrence of leader expropriation is important for economic development. This article studies experimentally how repeated interactions and communication can help deter leaders from extracting surplus from their subordinates. We show that repetition alone is far from sufficient in deterring leader expropriation. Communication between subordinates is critical for increasing coordinated resistance even when the information communicated is highly restrictive. Adding communication reduces expropriation significantly even in the presence of repetition.

Suggested Citation

Cason, Timothy N. and Mui, Vai‐Lam, Coordinating Resistance Through Communication and Repeated Interaction (February 2014). The Economic Journal, Vol. 124, Issue 574, pp. F226-F256, 2014. Available at SSRN: https://ssrn.com/abstract=2400785 or http://dx.doi.org/10.1111/ecoj.12088

Timothy N. Cason (Contact Author)

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States
765-494-1737 (Phone)

Vai‐Lam Mui

Monash University

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