Leadership

Multi-Level Study Of Sanctions: The Importance Of Second-Order Sanctions

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Executive Summary

In this paper, the author uses observational data to analyze instances of sanction conflict in a workplace, with the goal of understanding how sanctions may compete or interact. Using a data sample of trader behaviors exhibited while working under the influence of three sets of groups (crowd, firm, and exchange), the author identifies and analyzes the interplay of positive and negative sanctions. An analysis of sanction processes reveals a dynamic system where one group's sanctions not only causes another group's sanctions but also can modify another group's sanctions. This system of second-order sanctions is both intended and unintended. The author concludes by presenting a process analysis of unintended second-order sanctions which involve organizations reinforcing behavior it formally prohibits.

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