Resource title

Leniency programs in a multimarket setting: amnesty plus and penalty plus

Resource image

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Resource description

We examine the effects of Amnesty Plus and Penalty Plus, influencing firms whistle blowing incentives in one market, on their self-reporting decision in another market. Amnesty Plus and Penalty Plus are proactive US strategies which aim at triggering multiple confessions by increasing the incentives of already convicted firms to report in another market where they collude. Predictably, conditional on conviction of one cartel, Amnesty Plus and Penalty Plus strengthen firms incentives to report the remaining cartel. However, Amnesty Plus and Penalty Plus have an ambiguous impact on firms incentives to apply for amnesty in the first place: On the one hand, Amnesty Plus and Penalty Plus may help to sustain a cartel, otherwise reported under the EC policy. On the other hand, Amnesty Plus and Penalty Plus may induce immediate reporting of both cartels whereas only one of them would have been reported under the EC Leniency Program.

Resource author

Catherine Roux, Thomas von Ungern-Sternberg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26040

Resource license

Adapt according to the presented license agreement and reference the original author.