Leadership, Coordination and Mission-Driven Management

Patrick Bolton, Markus Brunnermeier and Laura Veldkamp

No 14339, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What makes a good leader? A good leader is able to coordinate his followers around a credible mission statement, which communicates the future course of action of the organization. In practice, leaders learn about the best course of action for the organization over time. While learning helps improve the organization's goals it also creates a time-consistency problem. Leader resoluteness is a valuable attribute in such a setting, since it slows down the leader's learning and thus improves the credibility of the mission statement. But resolute leaders also inhibit communication with followers and leader resoluteness is costly when followers have sufficiently valuable signals.

JEL-codes: D21 D23 D7 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-bec
Note: CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Review of Economic Studies (2012) doi: 10.1093/restud/rds041 First published online: December 5, 2012

Downloads: (external link)
http://www.nber.org/papers/w14339.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:14339

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w14339

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().