Discussion paper

DP2349 Leniency Programs and Cartel Prosecution

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.

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Citation

Polo, M and M Motta (2000), ‘DP2349 Leniency Programs and Cartel Prosecution‘, CEPR Discussion Paper No. 2349. CEPR Press, Paris & London. https://cepr.org/publications/dp2349