Effects of Leniency Programs on Cartel Stability
AbstractThis paper studies the effect of leniency programs on the stability of cartels under two different regimes of fines, fixed and proportional.We analyze the design of self-reporting incentives, having a group of defendants.Moreover, we consider a dynamic setup, where accumulated (not instantaneous) benefits and losses from crime are taken into account.We obtain that cartel occurrence is less likely if the rules of the leniency programs are more strict and the procedure of application for leniency is more confidential.Moreover, we conclude that, when the procedure of application for leniency is not confidential and penalties and rate of law enforcement are low, leniency may increase duration of cartel agreements.Surprisingly, under a fixed penalty scheme the introduction of a leniency program cannot improve the effectiveness of antitrust enforcement when the procedure of application for leniency is not confidential.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-98.
Date of creation: 2004
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
antitrust; law; policy;
Other versions of this item:
- NEP-COM-2004-11-07 (Industrial Competition)
- NEP-LAW-2004-11-07 (Law & Economics)
- NEP-REG-2004-11-07 (Regulation)
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.:
- Kaplow, Louis & Shavell, Steven, 1994.
"Optimal Law Enforcement with Self-Reporting of Behavior,"
Journal of Political Economy,
University of Chicago Press, vol. 102(3), pages 583-606, June.
- Louis Kaplow & Steven Shavell, 1994. "Optimal Law Enforcement with Self-Reporting of Behavior," NBER Working Papers 3822, National Bureau of Economic Research, Inc.
- José Apesteguia & Martin Dufwenberg & Reinhard Selten, 2003.
"Blowing the Whistle,"
Bonn Econ Discussion Papers
bgse9_2003, University of Bonn, Germany.
- José Apesteguía & Martin Dufwenberg & Reinhard Selten, 2003. "Blowing the Whistle," Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra 0303, Departamento de Economía - Universidad Pública de Navarra, revised 2003.
- Apesteguia, Jose & Dufwenberg, Martin & Selten, Reinhard, 2003. "Blowing the Whistle," Research Papers in Economics 2003:5, Stockholm University, Department of Economics.
- Reinganum, Jennifer F, 1981.
"On the Diffusion of New Technology: A Game Theoretic Approach,"
Review of Economic Studies,
Wiley Blackwell, vol. 48(3), pages 395-405, July.
- Reinganum, Jennifer F., . "On the Diffusion of New Technology: A Game Theoretic Approach," Working Papers 312, California Institute of Technology, Division of the Humanities and Social Sciences.
- Nuno Garoupa, 2000.
"Optimal magnitude and probability of fines,"
Economics Working Papers
454, Department of Economics and Business, Universitat Pompeu Fabra.
- Motchenkova, E. & Kort, P.M., 2004. "Analysis of the Properties of Current Penalty Schemes for Violations of Antitrust Law," Discussion Paper 2004-97, Tilburg University, Center for Economic Research.
- Innes, Robert, 1999. "Remediation and self-reporting in optimal law enforcement," Journal of Public Economics, Elsevier, vol. 72(3), pages 379-393, June.
- Motta, Massimo & Polo, Michele, 2003.
"Leniency programs and cartel prosecution,"
International Journal of Industrial Organization,
Elsevier, vol. 21(3), pages 347-379, March.
- Motta, M. & Polo, M., 1999. "Leniency Programs and Cartel Prosecution," Economics Working Papers eco99/23, European University Institute.
- Massimo Motta & Michele Polo, . "Leniency Programs and Cartel Prosecution," Working Papers 150, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Motta, Massimo & Polo, Michele, 2000. "Leniency Programs and Cartel Prosecution," CEPR Discussion Papers 2349, C.E.P.R. Discussion Papers.
- Garoupa, Nuno, 1997. " The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-95, September.
- Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Wiley Blackwell, vol. 52(3), pages 383-401, July.
- Houba, H.E.D. & Motchenkova, E. & Wen, Q., 2008.
"Maximal Cartel Pricing and Leniency Programs,"
2008-046, Tilburg University, Tilburg Law and Economic Center.
- Leliefeld, Daniel & Motchenkova, Evgenia, 2007.
"To protect in order to serve, adverse effects of leniency programs in view of industry asymmetry,"
Serie Research Memoranda
0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Leliefeld, D. & Motchenkova, E., 2007. "To Protect in Order to Serve: Adverse Effects of Leniency Programs in View of Industry Asymmetry," Discussion Paper 2007-007, Tilburg University, Tilburg Law and Economic Center.
- Gyuzel Yusupova, 2013. "Leniency program and cartel deterrence in Russia: effects assessment," HSE Working papers WP BRP 06/PA/2013, National Research University Higher School of Economics.
- Tim Reuter, 2012. "Private antitrust enforcement revisited: The role of private incentives to report evidence to the antitrust authority," Working Paper Series of the Department of Economics, University of Konstanz 2012-04, Department of Economics, University of Konstanz.
- Evgenia Motchenkova & Rob Laan, 2011. "Strictness of leniency programs and asymmetric punishment effect," International Review of Economics, Springer, vol. 58(4), pages 401-431, December.
- Patrice Bougette & Christian Montet & Florent Venayre, 2006. "L'efficacité économique des programmes de clémence," Post-Print halshs-00476807, HAL.
- Alfredo Burlando & Alberto Motta, 2007.
"Self Reporting reduces corruption in law enforcement,"
"Marco Fanno" Working Papers
0063, Dipartimento di Scienze Economiche "Marco Fanno".
- Motta, Alberto & Burlando, Alfredo, 2007. "Self reporting reduces corruption in law enforcement," MPRA Paper 5332, University Library of Munich, Germany, revised 23 Jun 2007.
- Agisilaou, Panayiotis, 2012. "Keep to sustain or keep to exploit? Why firms keep hard evidence," MPRA Paper 39109, University Library of Munich, Germany.
- Sánchez Navarro, Dennis, 2013.
"Eficacia y asimetrías de los programas de delación en un contexto multi-mercado: un análisis del caso colombiano en el marco del TLC con Estados Unidos
[Efficacy and asymmetries of the leniency ," MPRA Paper 48699, University Library of Munich, Germany.
- Agisilaou, Panayiotis, 2011. "Keep to sustain or keep to exploit? Why firms keep hard evidence," MPRA Paper 30963, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.