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Subordinates as Threats to Leaders

Author

Listed:
  • Glazer, Amihai

    (Department of Economics, University of California, Irvine)

  • Segendorff, Björn

    (Dept. of Economics, Stockholm School of Economics)

Abstract

A leader of an organization may view a subordinate as threatening or weakening the leader's position. The threat may increase with the subordinate's ability and reduce the rents the leader wins. In particular, a leader who trains his subordinate reduces the cost to the owner of a firm in replacing the leader, and so reduces the leader's bargaining power. The leader therefore provides inefficiently low training for the subordinate.

Suggested Citation

  • Glazer, Amihai & Segendorff, Björn, 2001. "Subordinates as Threats to Leaders," SSE/EFI Working Paper Series in Economics and Finance 0424, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0424
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    Keywords

    Leader; Subordinate; Threat; Training; Bargaining;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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