Arbeitspapier

Heterogeneous Penalties and Private Information

The theoretical framework of the adequacy or otherwise of fine reductions under the EU and US Leniency Programmes has been explored widely. However, the characteristics of the reporting cartel members remain unexplained. This is the first paper to develop a model where heterogeneous cartel members have private information on the probability of conviction. It is shown that firms which receive higher fines are more likely to report the cartel. To validate this result and analyze the sources of fine heterogeneity, data for EU and US cartels are used. Being the first reporter is shown to be correlated with recidivism, leadership and other fine reductions. Some characteristics of the cartels where reporting occurred are also unveiled. Identifying the characteristics of the reporting firms is vital to dissolve and dissuade cartels and the wider policy implications of these findings are discussed in the paper.

Sprache
Englisch

Erschienen in
Series: SITE Working Paper ; No. 29

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Antitrust Law
Illegal Behavior and the Enforcement of Law
Oligopoly and Other Imperfect Markets
Antitrust Issues and Policies: General
Economics of Regulation
Thema
Cartels
competition policy
Leniency Programme
private information
self-reporting

Ereignis
Geistige Schöpfung
(wer)
Marvão, Catarina
Ereignis
Veröffentlichung
(wer)
Stockholm School of Economics, Stockholm Institute of Transition Economics (SITE)
(wo)
Stockholm
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Marvão, Catarina
  • Stockholm School of Economics, Stockholm Institute of Transition Economics (SITE)

Entstanden

  • 2014

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