  Coordination facilitation and efficient decision-making are two essential
components of successful leadership. In this paper, we take an informational
approach and investigate how followers' information impacts coordination and
efficient leadership in a model featuring a leader and a team of followers. We
show that efficiency is achieved as the unique rationalizable outcome of the
game when followers possess sufficiently imprecise information. In contrast, if
followers have accurate information, the leader may fail to coordinate them
toward the desired outcome or even take an inefficient action herself. We
discuss the implications of the results for the role of leaders in the context
of financial fragility and crises.
