Working Paper No. 859

Trust, Leniency and Deterrence

Published: January 17, 2011, revised December 2014Pages: 38Keywords: Antitrust; Betrayal; Cartels; Collusion; Distrust; Fines; Leniency; WhistleblowersJEL-codes: C92; D03; K21; K42; L41
Published version

Trust, Leniency and Deterrence Maria Bigoni, Sven-Olof Fridolfsson, Chloe Le Coq and Giancarlo Spagnolo


This paper presents results from a laboratory experiment studying the channels through which different law enforcement strategies deter cartel formation. With leniency policies offering immunity to the first reporting party, a high fine is the main determinant of deterrence, having a strong effect even when the probability of exogenous detection is zero. Deterrence appears to be mainly driven by ‘distrust’; here, the fear of partners deviating and reporting. Absent leniency, the probability of detection and the expected fine matter more, and low fines are exploited to punish defections. The results appear relevant to several other forms of crimes that share cartels’ strategic features, including corruption and financial fraud.

 

 

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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