Honesty and leadership

We study the impact of honesty on electoral outcomes and effective leadership. We predict that dishonest candidates are more likely to win elections, and yet be less likely to lead effectively. Consequently, groups who elect honest leaders are more likely to achieve socially efficient outcomes. We use laboratory experiments to test these predictions. We find that cheating rates are high among leaders when cheating is possible. Further, we obtain causal evidence that, in relation to dishonest leaders, honest followers are more likely to obey honest leaders, resulting in improved cooperation, higher social efficiency and greater equity among group members.