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Blowing the Whistle

  • José 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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Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse9_2003.

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Length: 34
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:bon:bonedp:bgse9_2003
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Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany

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