Leaders as role models and ‘belief managers’ in social dilemmas

Gächter, Simon; Renner, Elke

Abstract

We investigate the link between leadership, beliefs and pro-social behavior in social dilemmas. This link is interesting because field evidence suggests that people's behavior in domains like charitable giving, tax evasion, corporate culture and corruption is influenced by leaders (CEOs, politicians) and beliefs about others’ behavior. Our framework is a repeated experimental public goods game with and without a leader who makes a contribution to the public good before others (the followers). We find that leaders strongly shape their followers’ initial beliefs and contributions. In later rounds, followers put more weight on other followers’ past behavior than on the leader's current action. This creates a path dependency the leader can hardly correct. We discuss the implications for understanding belief effects in naturally occurring situations.

Citation

Gächter, S., & Renner, E. (2018). Leaders as role models and ‘belief managers’ in social dilemmas. Journal of Economic Behavior and Organization, 154, 321-334. https://doi.org/10.1016/j.jebo.2018.08.001

• Journal Article Type: Article
• Acceptance Date: Aug 2, 2018
• Online Publication Date: Aug 23, 2018
• Publication Date: 2018-10
• Deposit Date: Aug 28, 2018
• Publicly Available Date: Aug 28, 2018
• Journal: Journal of Economic Behavior & Organization
• Print ISSN: 0167-2681
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 154
• Pages: 321-334
• DOI: https://doi.org/10.1016/j.jebo.2018.08.001
• Keywords: Economics and Econometrics; Organizational Behavior and Human Resource Management
• Public URL: https://nottingham-repository.worktribe.com/output/1048540
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0167268118302063
• Contract Date: Aug 28, 2018