On the Design of Leniency Programs
نویسندگان
چکیده
منابع مشابه
On the Design of Leniency Programs
Leniency programs contribute to destabilizing collusion, however offering generous leniency might risk being exploited to perverse effects. This paper develops a simple model to resolve this trade-off in the design of leniency programs, which allows us to relate the optimal leniency policies to the frequency and effectiveness of investigations. We show that it is always desirable to offer some ...
متن کاملThe Impact of Leniency Programs on Cartels
Antitrust authorities have set up leniency programs for firms that denounce collusive agreements in which they have participated. These programs, by inducing reports on collusive agreements, allow to fine participants and can thereby eventually deter collusion. We analyze the impact of reduced fines and positive rewards on the behavior of firms. We propose the use of whistle-blowing mechanisms,...
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This study characterizes the corporate leniency policy that minimizes the frequency with which collusion occurs. Though it can be optimal to provide only partial leniency, plausible sufficient conditions are provided whereby the antitrust authority should waive all penalties for the first firm to come forward. It is also shown that restrictions should be placed on when amnesty is awarded, thoug...
متن کاملOn the Design of Leniency Programs1
We develop a simple framework for analyzing the optimal design of leniency programs, which allow cartel members to denounce their collusive agreements. We highlight a basic trade-off between two opposite forces: leniency can destabilize cartels, by encouraging firms to report and bring evidence to the antitrust authority, but it can also reduce the expected penalties that cartel members face. W...
متن کاملThe Impact of Leniency and Whistleblowing Programs on Cartels∗
Antitrust authorities have set up leniency programs for cartel members that denounce their collusive agreements. These programs help prosecute participants and can thereby deter collusion. We compare the impact of reduced fines and positive rewards and argue that rewarding individuals, including firm employees, can deter collusion in a more effective way. We discuss possible adverse effects of ...
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ژورنال
عنوان ژورنال: The Journal of Law and Economics
سال: 2013
ISSN: 0022-2186,1537-5285
DOI: 10.1086/674011