Kobayashi, Hajime and Suehiro, Hideo (2008): Leadership by Confidence in Teams.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Leadership by Confidence in Teams|
|Keywords:||Endogenous Signaling, Team Production, Leadership|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
|Depositing User:||Hajime Kobayashi|
|Date Deposited:||24. Sep 2008 10:22|
|Last Modified:||11. Feb 2013 10:17|
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