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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2015, Vol. 10 Issue (1) : 56-84
research-article |
Team Dynamics Where Followers Have Illusion about Guide
Shyh-Fang Ueng()
Department of Economics, National Chung-Cheng University, Chia-Yi 621, Taiwan, China
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A team is assigned to accomplish a task in each infinitely-repeated period. The guide of the team and his followers are allowed to have asymmetric productivity; also the followers have either a hostile or favorable illusion toward the guide. Respective efforts and the followers’ illusion are private information. At the end of each period, the output of the joint task emerges and the followers evaluate the guide. The analysis shows (1) that potential for an unreasonable evaluation suppresses the guide’s effort down to an average level; (2) letting the followers inform the guide of their illusion in advance increases both sides’ payoffs; (3) abolishing the evaluation reduces both sides’ payoffs in general; and (4) however, if the magnitude of the followers’ hostile illusion weighted by its relative probability is enormous, abolishing the evaluation increases the output and the guide’s payoff.

Keywords joint task      guide      followers      illusion      effort      evaluation      output     
Issue Date: 23 March 2015
 Cite this article:   
Shyh-Fang Ueng. Team Dynamics Where Followers Have Illusion about Guide[J]. Front. Econ. China, 2015, 10(1): 56-84.
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