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Other-regarding preferences and management styles

Martin Kocher, Ganna Pogrebna and Matthias Sutter

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We use a laboratory experiment to examine whether and to what extent other-regarding preferences (efficiency, inequality aversion and maximin concerns) of team managers influence their management style in choice under risk. We find that managers who prefer efficiency are more likely to exercise an autocratic management style by ignoring preferences of their team members. Equality concerns have no significant impact on management styles. Elected managers have a higher propensity than exogenously assigned managers to use a democratic management style by reaching team consensus. We also find that male managers employ a democratic style more often than women.

JEL-codes: C91 C92 D70 D81 (search for similar items in EconPapers)
Date: 2013-04
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Citations: View citations in EconPapers (26)

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