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Sanctions and Leniency to Individuals, and its Impact on Cartel Discoveries: Evidence from the Netherlands

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  • Peter T. Dijkstra

    (The Chief Economist Office of the Netherlands Authority for Consumers and Markets (ACM))

  • Jonathan Frisch

    (Charles River Associates (CRA) International)

Abstract

Many competition authorities employ a leniency programme to fight cartels. We examine the impact of the introduction of sanctions and leniency for individuals responsible for the cartel, on the number of cartel discoveries. In our empirical study of the Dutch leniency programme, we find that this did not lead to more cartels being desisted as the number of cartel discoveries decreases over time. An analysis of characteristics of cartel members shows harsher enforcement after the revision, which indicates that the decrease in cartel discoveries is in line with higher cartel deterrence. Nevertheless, the number of cartel cases involving leniency actually decreases after the revision.

Suggested Citation

  • Peter T. Dijkstra & Jonathan Frisch, 2018. "Sanctions and Leniency to Individuals, and its Impact on Cartel Discoveries: Evidence from the Netherlands," De Economist, Springer, vol. 166(1), pages 111-134, March.
    • Handle: RePEc:kap:decono:v:166:y:2018:i:1:d:10.1007_s10645-017-9309-4
    DOI: 10.1007/s10645-017-9309-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Cartels; Leniency programme; Individual sanctions; Antitrust;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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