Final answer:
The major downside to being a variable-sum leader is the difficulty in efficiently reaching decisions that satisfy all stakeholders due to potential conflicts and the free rider problem, which can slow decision-making processes and lead to ethical dilemmas and conflicts.
Step-by-step explanation:
A downside to being a variable-sum leader is not explicitly mentioned in the provided information. However, based on the provided context of different leadership styles such as democratic, laissez-faire, and authoritarian, as well as the concept of collective decision making, a potential downside to a variable-sum leadership style could be the challenge in efficiently reaching decisions that satisfy all stakeholders due to the potential for conflict and the pursuit of individual gains, as suggested by the 'free rider problem' and scenarios of group polarization and collective dilemmas. A variable-sum leader is often attempting to maximize benefits for all, but this can lead to compromise challenges, as various parties may have conflicting interests.
For instance, in situations where consensus building is critical, the drive for individual benefit over collective good can slow down or stifle decision-making processes. Team members might pick sides, causing a divide that impedes progress. Furthermore, the variable-sum environment, wherein the gains of one participant do not necessarily equate to the losses of another, can complicate negotiations and lead to ethical dilemmas and conflict.