Ability, Openness, and Managerial Decision Making

Lei Wen and Haiwen Zhou

Atlantic Economic Journal, 2009, vol. 37, issue 2, 197-208

Abstract: Impact of the ability and the degree of openness of a manager on decision making is studied. Whether a more able manager increases or decreases the effort of a subordinate depends on the relative quality of information. Greater openness is a two-edged sword: it increases the likelihood that more information will be employed, but it reduces the manager’s incentive to expend effort on obtaining better information. A more open manager is more desirable when the position is relatively more important or the prior information is not very accurate. Copyright International Atlantic Economic Society 2009

Keywords: Managerial decision making; Bayesian decision making; Ability; Openness; M10 (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1007/s11293-008-9162-6

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