Apesteguia, José Dufwenberg, Martin Selten, Reinhard
Year of Publication:
Bonn Econ Discussion Papers No. 9/2003
University of Bonn, Bonn Graduate School of Economics (BGSE), Bonn
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.
Anti-trust leniency immunity amnesty blow the whistle cartels pricecompetition Bertrand model experiment communication