It is often touted that decisiveness is one of the most important qualities to be possessed by leaders, broadly defined. To see how and why decisiveness can be a valuable asset in organizations, we construct a model of strategic information transmission where: a decision maker solicits opinions...

This study examines whether Japanese firms' selling, general, and administrative costs are sticky. We also investigate the determinants of cost stickiness in Japan and test whether Japanese managers changed their cost behavior after the stock market collapse in 1990. We find that similar to US...

This paper examines the effectiveness of cheap talk when the receiver is imperfectly informed. We show that the receiver’s prior knowledge becomes an impediment to efficient communication in a model with the discrete state space: in general, the more the receiver is informed, the less...