Leadership

Who Makes A Good Leader? Social Preferences And Leading-By-Example

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Executive Summary

The authors examine the effects of social preferences and beliefs about the social preferences of others in a simple leader-follower voluntary contributions game. They find that groups perform best when led by those who are reciprocally oriented. Part of the effect can be explained by a false consensus effect: selfish players tend to think it more likely that they are matched with another selfish player and reciprocators tend to think it more likely that they are matched with another reciprocator. Thus, reciprocators contribute more as leaders partly because they are more optimistic than selfish players about the reciprocal responses of followers. However, even after controlling for beliefs they find that reciprocally-oriented leaders contribute more than selfish leaders.

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