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Discussion Paper Details

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Title: Why a Group Needs a Leader: Decision-making and Debate in Committees.

Author(s): Wouter Dessein

Publication Date: March 2007

Keyword(s): Authority, Committees, Debate, Group decision-making, Leadership and Majority rule

Programme Area(s): Industrial Organization

Abstract: I develop a model of group decision-making, in which a committee generates proposals and holds open discussions, but the ultimate decision is either taken by a leader (decision by authority) or by majority vote. Optimal communication processes are studied that combine both cheap talk statements (proposals) and costly state verification (discussions). I show that by favouring one particular agent ? the leader ? authoritative decision-making reduces rent-seeking discussions and often results in a higher decision-quality relative to majority decision-making. Institutions which guarantee a "right to voice" by separating the roles of decision maker and discussion leader may further improve efficiency.

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Bibliographic Reference

Dessein, W. 2007. 'Why a Group Needs a Leader: Decision-making and Debate in Committees.'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6168