Ability, Openness, and Managerial Decision Making

Lei Wen and Haiwen Zhou

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Managerial decision making; Bayesian decision making; ability; openness (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Date: 2018-04-14
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Published in Atlantic Economic Journal 2.37(2009): pp. 197-208

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Journal Article: Ability, Openness, and Managerial Decision Making (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:86205

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