Counterproductive Leniency Programs Against Corruption
The paper shows that fighting corruption with leniency programs -- reductions of the legal sanctions for wrongdoers who spontaneously report to law enforcers -- may be highly counterproductive. These programs are typically ``moderate,'' in the sense of only reducing, or at best cancelling the sanctions for the reporting party. Moderate leniency programs may be too weak to deter long-run corrupt relations and, as it turns out, provide an effective enforcement mechanism for other forms of corruption, one-shot and infrequent corrupt transactions, which would be unenforceable (and therefore absent) otherwise.
|Date of creation:||01 Aug 2000|
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CEPR Discussion Papers
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- Massimo Motta & Michele Polo, . "Leniency Programs and Cartel Prosecution," Working Papers 150, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W., 1997.
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The MIT Press,
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- Kaplow, Louis & Shavell, Steven, 1994.
"Optimal Law Enforcement with Self-Reporting of Behavior,"
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University of Chicago Press, vol. 102(3), pages 583-606, June.
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