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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2003:5:
Blowing the Whistle

Jose Apesteguia (), Martin Dufwenberg () and Reinhard Selten

Abstract: Leniency clauses, offering cartelists legal immunity if they blow the whistle on each other, is a recent anti-trust innovation. The authorities wish to thwart cartels and promote competition. This effect is not evident, however; whistle-blowing may enforce trust and collusion by providing a tool for cartelists to punish each other. We examine the impact of leniency law, and other rules, theoretically and experimentally.

Keywords: Anti-trust; leniency; immunity; amnesty; blow the whistle; cartels; price competition; Bertrand model; experiment; communication; (follow links to similar papers)

JEL-Codes: C92; D43; L13; (follow links to similar papers)

29 pages, May 6, 2003

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