Leniency Policies and Cartel Success: An Experiment

B-Tier
Journal: Review of Industrial Organization
Year: 2023
Volume: 63
Issue: 2
Pages: 187-210

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract Cartels are often fought by granting leniency, in the form of forgiveness of penalties, to whistle-blowers. This study employs a laboratory experiment to compare leniency programs that differ with respect to fine size and whether a second whistle-blower may apply for leniency. The results show that leniency does not affect the probability that a cartel forms, but is effective in exposing cartels and thereby inhibiting cartel success. Higher fines are more effective, but allowing leniency to a second whistle-blower is no more effective than granting leniency to only one whistle-blower.

Technical Details

RePEc Handle
repec:kap:revind:v:63:y:2023:i:2:d:10.1007_s11151-023-09915-z
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25