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Beyond the Cartel Law Handbook: How Corruption, Social Norms and Collectivist Business Cultures can Undermine Conventional Enforcement Tools

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Author Info
Andreas Stephan () (Centre for Competition Policy, University of East Anglia)
Abstract

The combination of leniency programmes, high sanctions, complaints from customers and private actions for damages, has proven very successful at uncovering and punishing cartel agreements in the US. Countless jurisdictions are being encouraged to adopt these ‘conventional’ enforcement tools, in the absence of an international competition authority. The purpose of this paper is to widen the debate on cartel enforcement by identifying three issues which can undermine their effectiveness in some jurisdictions: (1) Corruption and organised crime; (2) Social norms that are sympathetic to collusive practices; (3) Collectivist business cultures built on personal relationships.

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Publisher Info
Paper provided by Centre for Competition Policy, University of East Anglia in its series Working Papers with number 08-29.

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Length: 26 pages
Date of creation: Sep 2008
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Handle: RePEc:ccp:wpaper:wp08-29

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Related research
Keywords: cartels; leniency programmes; enforcement; corruption; organised crime; social norms; collectivism;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
Z1 - Other Special Topics - - Cultural Economics

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This page was last updated on 2009-11-26.

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