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The strength of weak leaders: an experiment on social influence and social learning in teams

Author

Listed:
  • Berno Buechel

    (University of Fribourg)

  • Stefan Klößner

    (Saarland University)

  • Martin Lochmüller

    (University of Hamburg)

  • Heiko Rauhut

    (University of Zurich)

Abstract

We investigate how the selection process of a leader affects team performance with respect to social learning. We use a laboratory experiment in which an incentivized guessing task is repeated in a star network with the leader at the center. Leader selection is either based on competence, on self-confidence, or made at random. In our setting, teams with random leaders do not underperform. They even outperform teams with leaders selected on self-confidence. Hence, self-confidence can be a dangerous proxy for competence of a leader. We show that it is the declaration of the selection procedure which makes non-random leaders overly influential. To investigate the opinion dynamics, we set up a horse race between several rational and naïve models of social learning. The prevalent conservatism in updating, together with the strong influence of the team leader, imply an information loss since the other team members’ knowledge is not sufficiently integrated.

Suggested Citation

  • Berno Buechel & Stefan Klößner & Martin Lochmüller & Heiko Rauhut, 2020. "The strength of weak leaders: an experiment on social influence and social learning in teams," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 259-293, June.
    • Handle: RePEc:kap:expeco:v:23:y:2020:i:2:d:10.1007_s10683-019-09614-1
    DOI: 10.1007/s10683-019-09614-1
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    2. Vincenz Frey & Arnout van de Rijt, 2021. "Social Influence Undermines the Wisdom of the Crowd in Sequential Decision Making," Management Science, INFORMS, vol. 67(7), pages 4273-4286, July.

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    More about this item

    Keywords

    Social networks; Confidence; Overconfidence; Bayesian updating; Naïve learning; Wisdom of crowds;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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