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Determinants of self-reporting under the European corporate leniency program

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  • Hoang, Cung Truong
  • Hüschelrath, Kai
  • Laitenberger, Ulrich
  • Smuda, Florian

Abstract

We empirically investigate the determinants of self-reporting under the European corporate leniency program. Applying a data set consisting of 442 firm groups that participated in 76 cartels decided by the European Commission between 2000 and 2011, we find that the probability of a firm becoming the chief witness increases with its character as repeat offender, the size of the expected basic fine, the number of countries active in one group as well as the size of the firm's share in the cartelized market. Our results have important implications for an effective prosecution of anti-cartel law infringers.

Suggested Citation

  • Hoang, Cung Truong & Hüschelrath, Kai & Laitenberger, Ulrich & Smuda, Florian, 2014. "Determinants of self-reporting under the European corporate leniency program," ZEW Discussion Papers 14-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:14043
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    References listed on IDEAS

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    3. Catarina Marvão, 2016. "The EU Leniency Programme and Recidivism," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 1-27, February.
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    5. Steffen Brenner, 2011. "Self-disclosure at international cartels," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 221-234, February.
    6. Gärtner, Dennis L. & Zhou, Jun, 2012. "Delays in Leniency Application: Is There Really a Race to the Enforcer's Door?," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 395, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    7. Motta, Massimo & Polo, Michele, 2003. "Leniency programs and cartel prosecution," International Journal of Industrial Organization, Elsevier, vol. 21(3), pages 347-379, March.
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    10. Buccirossi, Paolo & Spagnolo, Giancarlo, 2006. "Leniency policies and illegal transactions," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1281-1297, August.
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    1. repec:elg:eechap:17978_4 is not listed on IDEAS
    2. Hellwig, Michael & Hüschelrath, Kai, 2016. "Cartel cases and the cartel enforcement process in the European Union 2001-2015: A quantitative assessment," ZEW Discussion Papers 16-063, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Catarina Marvão & Giancarlo Spagnolo, 2018. "Cartels and leniency: Taking stock of what we learnt," Chapters,in: Handbook of Game Theory and Industrial Organization, Volume II, chapter 4, pages 57-90 Edward Elgar Publishing.
    4. Hüschelrath, Kai & Laitenberger, Ulrich, 2015. "The settlement procedure in EC cartel cases: An empirical assesment," ZEW Discussion Papers 15-064, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Heim, Sven & Hüschelrath, Kai & Laitenberger, Ulrich & Spiegel, Yossi, 2017. "Minority share acquisitions and collusion: Evidence from the introduction of national leniency programs," ZEW Discussion Papers 17-037, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    Competition policy; cartels; leniency; European Union;

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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