The EU Leniency Programme and Recidivism
Catarina Marvao ()
Review of Industrial Organization, 2016, vol. 48, issue 1, 27 pages
The EU Leniency Programme aims to encourage the dissolution of existing cartels and the deterrence of future cartels, through self-reporting and/or significant cooperation by cartel members during an investigation. However, the European Commission guidelines are vague in terms of the factors that influence the granting and scale of leniency-related penalty reductions. In this paper, the empirical analysis of the penalty reductions that have been granted shows, as expected, that the first reporting or cooperating firms receive generous fine reductions. More importantly, there is some evidence that firms can “learn how to play the leniency game”, either learning how to cheat or how to report, as the reductions that are given to repeat (and multiple) offenders are substantially higher. These results have an ambiguous impact on firms’ incentives and major implications for policy making. Copyright Springer Science+Business Media New York 2016
Keywords: Cartels; Competition policy; Leniency Programme; Self-reporting; K21; K42; L4; L51 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: The EU Leniency Programme and Recidivism (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:48:y:2016:i:1:p:1-27
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2
Access Statistics for this article
Review of Industrial Organization is currently edited by L.J. White
More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().