Rebating antitrust fines to encourage private damages actions

Arbeitspapier

To encourage private actions for damages in antitrust cases some jurisdictions subtract a fraction of the redress from the fine. We analyze the effectiveness of this policy. Such a rebate does not encourage settlement negotiations that would otherwise not occur. If, however, the parties settle without the rebate, the introduction of the reduction increases the settlement amount, yet at the price of reduced deterrence for those wrongdoers who are actually fined. Under a leniency program the rebate has no effect on the leniency applicant: she doesn't pay a fine that can be reduced. The overall effect of a fine reduction on deterrence is, therefore, negative.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 20-02

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Antitrust Law ; Illegal Behavior and the Enforcement of Law ; Antitrust Issues and Policies: General
• Subject: antitrust ; damages ; deterrence ; leniency

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Emons, Winand ; Lenhard, Severin
• Event: Veröffentlichung
• (who): University of Bern, Department of Economics
• (where): Bern
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/228890
• Last update: 10.03.2025, 11:47 AM CET