"The loss of power: How illusions of alliance contribute to powerholders’ downfall", Brion & Anderson 2013:

Though people in positions of power have many advantages that sustain their power, stories abound of individuals who fall from their lofty perch. How does this happen? The current research examined the role of illusions of alliance, which we define as overestimating the strength of one’s alliances with others. We tested whether powerholders lose power when they possess overly positive perceptions of their relationships with others, which in turn leads to the weakening of those relationships. Studies 1 and 2 found that powerful individuals were more likely to hold illusions of alliance. Using laboratory as well as field contexts, Studies 3, 4, and 5 found that individuals with power who held illusions of alliance obtained fewer resources, were excluded more frequently from alliances, and lost their power. These findings suggest that power sometimes leads to its own demise because powerful individuals erroneously assume that others feel allied to them.

Courtesy of The Economist:

So not only do bosses set too much store by their strengths, as our Schumpeter column notes, they also habitually overestimate their ability to win respect and support from their underlings. Somehow, on reaching the corner office, they lose the knack of reading subtle cues in others’ behaviour: in a further experiment Mr Brion found that when a boss tells a joke to a subordinate, he loses his innate ability to distinguish between a real and fake smile.