Abstract
This article explores the determinants of effective leadership in a team of production. We obtain that for leadership to be effective, the leader must be at least as productive as the follower. In the case of a charismatic leader, we obtain that efficiency can be restored with a homogeneous team.
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Acknowledgement
Antoni Cunyat acknowledges financial support from the Spanish Ministry of Education and Science, Project ECO2011-29230.
Notes
1 1 The same qualitative results can be obtained if we, alternatively, consider Huck and Rey-Biel (Citation2006) utility function where b 1 has no upper bound: , b 1 ≥ 0. For the purposes of the article, it is more convenient to normalize b 1 [0, 1].