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Leniency Programs and Cartel Organization of Multiproduct Firms

Author

Listed:
  • Dargaud Emilie

    (Univ Lyon, Université Lumière Lyon 2, GATE, UMR 5824, F-69130Ecully, France)

  • Jacques Armel

    (CEMOI, Université de La Réunion, Faculté de Droit et d’Economie, 15, avenue René Cassin, 97715 Saint-Denis messag cedex 9, Saint-Denis, Réunion, France)

Abstract

When multi-product firms make simultaneous price-fixing agreements in different markets, they may compartmentalize these agreements by having different individuals manage them so as to avoid the contagion of antitrust authority investigations. Leniency programs can overcome this strategy but may also lead to procollusive effects for centralized firms. The introduction of US amnesty plus programs can have different competitive effects, and leniency programs may modify firms’ choice of internal structure.

Suggested Citation

  • Dargaud Emilie & Jacques Armel, 2020. "Leniency Programs and Cartel Organization of Multiproduct Firms," Review of Law & Economics, De Gruyter, vol. 16(3), pages 1-39, November.
    • Handle: RePEc:bpj:rlecon:v:16:y:2020:i:3:p:39:n:3
    DOI: 10.1515/rle-2018-0060
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    Cited by:

    1. Isogai, Shigeki & Shen, Chaohai, 2023. "Multiproduct firm’s reputation and leniency program in multimarket collusion," Economic Modelling, Elsevier, vol. 125(C).
    2. Emilie Dargaud & Armel Jacques, 2020. "Slowdown antitrust investigations by decentralization," Working Papers halshs-02613352, HAL.

    More about this item

    Keywords

    collusion; antitrust policy; leniency programs; multimarket contact; organizational form;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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