Scandinavian Working Papers in Economics
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Department of Economics, Copenhagen Business School Working Paper Series, Department of Economics, Copenhagen Business School

No 02-2002:
Must Trust Bust?

Peter Møllgaard

Abstract: Our trust in competition policy is based on faith in markets.

When markets are oligopolies, already classical economists’ trust in

competition busted: Oligopolies carry the seeds of collusion. To develop,

collusion needs trust between firms. But new leniency programmes are

designed to bust that trust. I discuss when trust busters are likely to succeed

and when trust prevails.

Keywords: Competition policy; Oligopolies; Collusion; Trust; Leniency programmes; (follow links to similar papers)

JEL-Codes: G10; G18; L13; (follow links to similar papers)

14 pages, February 4, 2002

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