The Effect of Leadership in a Public Bad Experiment

Topics:
Strategic Management Tools
Tags:
Leader,
Leadership,
Management
Source:
Center for Quality of Management

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Overview: With regard to globalor regional environmental problems, do countries that take unilateral actions inspire other countries to curtail emissions? In this paper this possibility is investigated by the use of a novel design of a laboratory public bad experiment with a leader. Twelve groups of five subjects played the game twice, with two treatments: ten rounds with a leader and ten rounds without a leader. The order of the treatments was varied over groups. A significant (within-subject) effect of leadership is found. Followers invest on average 15 percent less in the public bad when there is a leader setting the good example as opposed to a situation with no leader. Furthermore, total payoffs turn out to be significantly higher in the leader treatment than in the no-leader treatment.

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Format: PDF | Size: 240KB | Date: Jan 2003 | Pages: 20

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