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Effects Of Hostility Tradition In Antitrust: Leniency Programs And Cooperation Agreements

Author

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  • Natalia Pavlova

    (National Research University Higher School of Economics)

  • Andrey Shastitko

    (National Research University Higher School of Economics)

Abstract

The article focuses on the effects that type I errors can have on the incentives of firms to compete, collude or engage in efficiency promoting socially beneficial cooperation. Our results confirm that in the presence of type I errors the introduction of a leniency program can have ambiguous effects, including the destruction and prevention of welfare enhancing horizontal cooperation agreements. The obtained results help understand the negative impact the hostility tradition resulting in type I enforcement errors can have on social welfare when applied to the regulation of horizontal agreements.

Suggested Citation

  • Natalia Pavlova & Andrey Shastitko, 2014. "Effects Of Hostility Tradition In Antitrust: Leniency Programs And Cooperation Agreements," HSE Working papers WP BRP 58/EC/2014, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:58/ec/2014
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    References listed on IDEAS

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    Cited by:

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    2. Andrey V. Makarov, 2014. "Comparative Analusis Of Antitrust Policy Against Collusion In Some Transition Economies: Challenges For Effectiveness," HSE Working papers WP BRP 20/PA/2014, National Research University Higher School of Economics.

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    More about this item

    Keywords

    antitrust; competition; collusion; cooperation agreements; leniency; enforcement errors;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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