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In the Interest of OthersOrganizations and Social Activism$
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John S. Ahlquist and Margaret Levi

Print publication date: 2013

Print ISBN-13: 9780691158563

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691158563.001.0001

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Building an Encompassing Community of Fate and Winning Consent

Building an Encompassing Community of Fate and Winning Consent

(p.22) Chapter 2 Building an Encompassing Community of Fate and Winning Consent
In the Interest of Others

John S. Ahlquist

Margaret Levi

Princeton University Press

This chapter looks at the development of a formal model that specifies the relationships between leaders and members. Organizational leaders can develop reputations for effectiveness; this reputation makes possible leadership rents, which expand cooperation and compensate the leader when information acquisition and communication are costly. Members agree to contribute to the leader's compensation up to a point. The form these rents take, whether monetary or political, affects the scope of union activities. Since these outcomes are only a few of many possible, the chapter introduces the concept of organizational governance institutions that embody the union's solution to the equilibrium selection problem. As in all formal models, particularly those intended as part of an analytic narrative, the study lays out the paths not taken as well as the one followed.

Keywords:   organizational leaders, members, cooperation, information acquisition, leadership rents, organizational governance, equilibrium selection

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