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Marker Systems in Leniency Policies

Author

Listed:
  • Konstantinos Charistos

    (University of Ioannina)

Abstract

Leniency Programs (LPs) reward cartel-participating firms that come forward with evidence that can be used as proof of the illegal conduct in which they have participated. The marker system allows a leniency applicant to reserve its position in the reporting queue before the names of the eligible applicants are announced. We show that markers can reduce the destabilizing effect of LPs: When cartels are established either with or without a marker system, self-reporting and cartel disruption are less likely with markers, as compared to without markers. In addition, the introduction of markers in LPs may further the sustainability of collusion.

Suggested Citation

  • Konstantinos Charistos, 2024. "Marker Systems in Leniency Policies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(3), pages 745-757, November.
    • Handle: RePEc:kap:revind:v:65:y:2024:i:3:d:10.1007_s11151-024-09955-z
    DOI: 10.1007/s11151-024-09955-z
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    References listed on IDEAS

    as
    1. Zhijun Chen & Patrick Rey, 2013. "On the Design of Leniency Programs," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 917-957.
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    4. Marc Blatter & Winand Emons & Silvio Sticher, 2018. "Optimal Leniency Programs When Firms Have Cumulative and Asymmetric Evidence," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(3), pages 403-427, May.
    5. Katsoulacos, Yannis & Motchenkova, Evgenia & Ulph, David, 2015. "Penalizing cartels: The case for basing penalties on price overcharge," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 70-80.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Antitrust enforcement; Collusion; Leniency programs; Marker system;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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