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Leniency Programs and Cartel Prosecution

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Author Info
Motta, Massimo
Polo, Michele

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Abstract

We study the enforcement of competition policy against collusion under Leniency Programs, which give reduced fines to firms revealing information to the Antitrust Authority. Such programs give firms an incentive to break collusion, but may also have a pro-collusive effect, since they decrease the expected cost of misbehaviour. We analyze the optimal policy under alternative rules, obtaining a ranking of the different schemes and showing when the use of reduced fines may improve antitrust enforcement.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2349.

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Date of creation: Jan 2000
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Handle: RePEc:cpr:ceprdp:2349

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Related research
Keywords: Amnesties; Antitrust; Cartels; Collusion; Optimal Deterrence;

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Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
K20 - Law and Economics - - Regulation and Business Law - - - General
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Reinganum, Jennifer F., 1986. "Plea Bargaining and Prosecutorial Discretion," Working Papers 616, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  2. Schweizer, Urs, 1989. "Litigation and Settlement under Two-Sided Incomplete Information," Review of Economic Studies, Blackwell Publishing, vol. 56(2), pages 163-77, April. [Downloadable!] (restricted)
  3. Lucian Arye Bebchuk, 1984. "Litigation and Settlement under Imperfect Information," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 404-415, Autumn. [Downloadable!] (restricted)
  4. Grossman, Gene M & Katz, Michael L, 1983. "Plea Bargaining and Social Welfare," American Economic Review, American Economic Association, vol. 73(4), pages 749-57, September. [Downloadable!] (restricted)
  5. Steven Shavell, 1989. "Sharing of Information Prior to Settlement or Litigation," RAND Journal of Economics, The RAND Corporation, vol. 20(2), pages 183-195, Summer. [Downloadable!] (restricted)
  6. Jennifer F. Reinganum & Louise L. Wilde, 1986. "Settlement, Litigation, and the Allocation of Litigation Costs," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 557-566, Winter. [Downloadable!] (restricted)
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