SSE/EFI Working Paper Series in Economics and Finance
Amihai Glazer and Björn Segendorff
Subordinates as Threats to Leaders
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.
Keywords: Leader; Subordinate; Threat; Training; Bargaining; (follow links to similar papers)
JEL-Codes: C72; D72; D82; J33; (follow links to similar papers)
13 pages, January 21, 2001
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