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Situational Leadership Theory
It is a broadly practiced leadership model established by Paul Hersey and Ken Blanchard. This contingency theory focuses on the followers and describes leadership effectiveness in terms of whether the leader is accepted or rejected. Situational leadership uses the similar task and relationship dimensions. Depending on the maturity of the followers and the ability and willingness of people to take responsibility by their own behavior the leaders should use one of 4 specific styles that are selling (high task, high relationship), participating (low task, high relationship), telling (high task, low relationship), or delegating (low task, low relationship).
In a large city, both sellers (convenience stores, say) and consumers are evenly spread out. There is no market power on either side and the equilibrium price for "one purchase" at
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