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Blowing the Whistle

  • Jose Apesteguia


  • Martin Dufwenberg


  • Reinhard Selten

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.

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Article provided by Springer in its journal Economic Theory.

Volume (Year): 31 (2007)
Issue (Month): 1 (April)
Pages: 143-166

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Handle: RePEc:spr:joecth:v:31:y:2007:i:1:p:143-166
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