When is it OK to Break the Rules? (WITHDRAWN)

Abstract

Rules are crucial for any organization, but people are sometimes encouraged to break organizational rules. Doing so often leads to more efficient, more creative organizations. It is possible, however, for rule-breaking to go too far. How do employees figure out when and whether to break the rules? We model intuitive rule-breaking by drawing on a theory of social interactions -- ``virtual bargaining'' -- that assumes that actors engaged in a simulated bargaining process when navigating the social world. In this paper, we present experimental data which suggests that rule-breaking decisions are driven by virtual bargaining. We conclude by discussing implications for organizational structure and management.