IDEAS home Printed from https://ideas.repec.org/a/srs/jarle0/v3y2012i1(5)p26-42.html
   My bibliography  Save this article

The Effects Of Ringleader Discrimination On Cartel Stability And Deterrence Experimental Insights

Author

Listed:
  • Michael Hesch

    (Bundeskartellamt German Federal Cartel Office Germany Karlsruhe Institute of Technology KIT Institute of Economic Theory and Statistics Germany)

Abstract

Cartel ringleaders make significant contributions to enabling illegal collusive agreements to function According to US legislation ringleaders are excluded from corporate leniency programs Since 2002 under EU regulations ringleaders may qualify for a reduction of fines To date both antitrust laws treat cartel ringleaders differently We analyze the impact of this difference in a cartel experiment Given a low probability of detection through an authority we find that excluding ringleaders from leniency facilitates cartel formation stabilizes collusion and leads to significantly higher market prices The opposite holds for a high probability of detection Here the results are in line with the situation when every player can apply for leniency

Suggested Citation

  • Michael Hesch, 2012. "The Effects Of Ringleader Discrimination On Cartel Stability And Deterrence Experimental Insights," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 3(1(5)), pages 26-42.
    • Handle: RePEc:srs:jarle0:v:3:y:2012:i:1(5):p:26-42
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maximilian Andres & Lisa Bruttel & Jana Friedrichsen, 2019. "The Effect of a Leniency Rule on Cartel Formation and Stability: Experiments with Open Communication," Discussion Papers of DIW Berlin 1835, DIW Berlin, German Institute for Economic Research.
    2. Andres, Maximilian & Bruttel, Lisa & Friedrichsen, Jana, 2021. "The leniency rule revisited: Experiments on cartel formation with open communication," International Journal of Industrial Organization, Elsevier, vol. 76(C).
    3. Juan Luis Jiménez & Manuel Ojeda-Cabral & José Manuel Ordóñez-de-Haro, 2023. "Who Blows the Whistle on Cartels? Finding the Leniency Applicant at the European Commission," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 63(2), pages 123-153, September.
    4. Georg Clemens & Holger A. Rau, 2019. "Do discriminatory leniency policies fight hard‐core cartels?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 336-354, April.
    5. Catarina Marvão & Giancarlo Spagnolo, 2018. "Cartels and leniency: Taking stock of what we learnt," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume II, chapter 4, pages 57-90, Edward Elgar Publishing.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:srs:jarle0:v:3:y:2012:i:1(5):p:26-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Claudiu Popirlan (email available below). General contact details of provider: http://journals.aserspublishing.eu/jarle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.