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Self-disclosure at international cartels

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  • Steffen Brenner

    (Department of International Economics and Management, Copenhagen Business School, Frederiksberg, Denmark)

Abstract

We study revelation behavior at illegal international cartels. Our hypotheses suggest that a resource advantage induces executives of large multinational enterprises (MNEs) to be more likely to reveal the cartel and to cooperate with the antitrust agency during the prosecution stage. Moreover, we expect the cultural background to influence the firm's inclination to reveal incriminating evidence. Empirical tests based on data about cartel breakdowns under the EU Leniency Program show that large MNEs are indeed more likely to reveal the cartel. However, they largely fail to explain variation in legal actions along cultural dimensions.

Suggested Citation

  • Steffen Brenner, 2011. "Self-disclosure at international cartels," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 221-234, February.
  • Handle: RePEc:pal:jintbs:v:42:y:2011:i:2:p:221-234
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    Cited by:

    1. Hoang, Cung Truong & Hüschelrath, Kai & Laitenberger, Ulrich & Smuda, Florian, 2014. "Determinants of self-reporting under the European corporate leniency program," International Review of Law and Economics, Elsevier, vol. 40(C), pages 15-23.
    2. Brian C Pinkham & Mike W Peng, 2017. "Overcoming institutional voids via arbitration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 344-359, April.
    3. repec:kap:ejlwec:v:44:y:2017:i:1:d:10.1007_s10657-014-9459-7 is not listed on IDEAS
    4. Marvão, Catarina, 2014. "Heterogeneous Penalties and Private Information," Konkurrensverket Working Paper Series in Law and Economics 2014:1, Konkurrensverket (Swedish Competition Authority).
    5. Jun Zhou, 2016. "The dynamics of leniency application and the knock-on effect of cartel enforcement," Working Papers 13042, Bruegel.
    6. Houba Harold & Motchenkova Evgenia & Wen Quan, 2015. "The Effects of Leniency on Cartel Pricing," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 15(2), pages 351-389, July.
    7. Marvao, Catarina, 2014. "Heterogeneous Penalties and Private Information," SITE Working Paper Series 29, Stockholm School of Economics, Stockholm Institute of Transition Economics.
    8. Marvao, Catarina & Spagnolo, Giancarlo, 2016. "Cartels and Leniency: Taking stock of what we learnt," SITE Working Paper Series 39, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 16 Nov 2016.

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