Fines, Leniency, and Rewards in Antitrust

Reprint No. 2012:24

Author(s): Maria Bigoni, Sven-Olof Fridolfsson, Chloé Le Coq and Giancarlo SpagnoloYear: 2012 Title: RAND Journal of Economics Volume (No.): 43 (2) Pages: 368–390
Online article (restrictions may apply)
Preliminary version

This article reports results from an experiment studying how FINES, LENIENCY, and REWARDS for whistleblowers affect cartel formation and prices. Antitrust without LENIENCY reduces cartel formation but increases cartel prices: subjects use costly FINES as punishments. LENIENCY improves antitrust by strengthening deterrence but stabilizes surviving cartels: subjects appear to anticipate the lower postconviction prices after reports/LENIENCY. With REWARDS, prices fall at the competitive level. Overall, our results suggest a strong cartel deterrence potential for well-run LENIENCY and REWARD schemes. These findings may also be relevant for similar white-collar organized crimes, such as corruption and fraud.

Bigoni, Maria, Sven-Olof Fridolfsson, Chloé Le Coq and Giancarlo Spagnolo (2012), "Fines, Leniency, and Rewards in Antitrust". RAND Journal of Economics 43(2), 368–390.

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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