Captains vs. All-Stars: Who makes better leaders?

This study explores the impact of formally assigned leaders (team captains) and informal leaders (all-stars) on their teammates' productivity in basketball. It uses in-game injuries as random shocks to examine how the unexpected absence of leaders affects team and individual performance. The research employs a staggered difference-in-differences estimation, to study peer effects in high-stakes team environments. The key finding is that only players who are both formal and informal leaders have spillover effects on their teammates' performance. The findings could extend to team management practices across various industries, providing insights into effective team composition and leader selection.