The paradox of sanctioning is
A) the greater the sanction (fines, jail time, etc.) the greater the deterrent; however, courts are reluctant to apply large sanctions.
B) the greater the enforcement costs, the more likely firms are to avoid compliance.
C) the larger the sanction, the greater the publicity.
D) all of the above.

Question

Quizplus · Accepted Answer

The paradox of sanctioning is that the greater the sanction (such as fines or jail time) the greater the deterrent effect it may have, but courts are often reluctant to apply such large sanctions. This can create a paradox as the goal of the sanction is to deter noncompliance, but the reluctance to apply large sanctions makes it less effective in achieving that goal. Option B refers to the problem of enforcement costs, which is a separate issue from the paradox of sanctioning. Option C is generally true, but is not directly related to the paradox of sanctioning.

The Paradox of Sanctioning Is