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Blowing the Whistle

Author

Listed:
  • Apesteguia, José
  • Dufwenberg, Martin
  • Selten, Reinhard

Abstract

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.

Suggested Citation

  • Apesteguia, José & Dufwenberg, Martin & Selten, Reinhard, 2003. "Blowing the Whistle," Bonn Econ Discussion Papers 9/2003, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:92003
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    Other versions of this item:

    • Jose Apesteguia & Martin Dufwenberg & Reinhard Selten, 2007. "Blowing the Whistle," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 143-166, April.

    References listed on IDEAS

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    More about this item

    Keywords

    Anti-trust; leniency; immunity; amnesty; blow the whistle; cartels; pricecompetition; Bertrand model; experiment; communication;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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