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Leniency Programs and Cartel Prosecution

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  • Motta, Massimo
  • Polo, Michele

Abstract

We study the enforcement of competition policy against collusion under Leniency Programs, which give reduced fines to firms revealing information to the Antitrust Authority. Such programs give firms an incentive to break collusion, but may also have a pro-collusive effect, since they decrease the expected cost of misbehaviour. We analyze the optimal policy under alternative rules, obtaining a ranking of the different schemes and showing when the use of reduced fines may improve antitrust enforcement.

Suggested Citation

  • Motta, Massimo & Polo, Michele, 2000. "Leniency Programs and Cartel Prosecution," CEPR Discussion Papers 2349, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:2349
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    References listed on IDEAS

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    More about this item

    Keywords

    Amnesties; Antitrust; Cartels; Collusion; Optimal Deterrence;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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