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Blowing the Whistle

Author

Listed:
  • Jose Apesteguia

    ()

  • Martin Dufwenberg

    ()

  • Reinhard Selten

Abstract

Leniency clauses, offering cartelists legal immunity if they blow the whistle on each other, is a recent anti-trust innovation. The authorities wish to thwart cartels and promote competition. This effect is not evident, however; whistle-blowing may enforce trust and collusion by providing a tool for cartelists to punish each other. We examine the impact of leniency law, and other rules, theoretically and experimentally.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jose Apesteguia & Martin Dufwenberg & Reinhard Selten, 2007. "Blowing the Whistle," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 143-166, April.
    • Handle: RePEc:spr:joecth:v:31:y:2007:i:1:p:143-166
    DOI: 10.1007/s00199-006-0092-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Anti-trust; Leniency; Immunity; Amnesty; Blow the whistle; Cartels; Price competition; Bertrand model; Experiment communication; C92; D43; L13;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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