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Handbook of Leadership Theory and Practice by Rakesh Khurana, Nitin Nohria

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9

ECONOMISTS’ PERSPECTIVES ON LEADERSHIP

Patrick Bolton, Markus K. Brunnermeier, and Laura Veldkamp

Introduction

It is fair to say that leadership in organizations is not a topic that has received a lot of attention by economists. It is only very recently that a small but rapidly growing economics literature on leadership has emerged. The goal of this survey article is to review this literature and to consider how the leadership problem is embedded in the broader context of the managerial theory of the firm.

It is not just the notion of leadership that is foreign to most economists. Even the raison d’être of firms in a market economy, the boundaries of firms, and their internal organization are still imperfectly understood. For a long time economists ...

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