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The Effects Of Leniency Programs And Fines On Cartel Stability

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  • Ankur Chavda
  • Marc Jegers

Abstract

Using a stylized oligopoly model, we analyze the effect of cartel deterring fines, taking into consideration exemptions granted to cartel members cooperating with the competition authorities. We conclude that the fines can act as a deterrent to breaking collusive agreements, thus stabilizing the cartel.

Suggested Citation

  • Ankur Chavda & Marc Jegers, 2007. "The Effects Of Leniency Programs And Fines On Cartel Stability," Metroeconomica, Wiley Blackwell, vol. 58(2), pages 231-243, May.
    • Handle: RePEc:bla:metroe:v:58:y:2007:i:2:p:231-243
    DOI: 10.1111/j.1467-999X.2007.00266.x
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    References listed on IDEAS

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    1. Motta, Massimo & Polo, Michele, 2003. "Leniency programs and cartel prosecution," International Journal of Industrial Organization, Elsevier, vol. 21(3), pages 347-379, March.
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