Scandinavian Working Papers in Economics

SITE Working Paper Series,
Stockholm School of Economics, Stockholm Institute of Transition Economics

No 50: Financial Incentives for Whistleblowers: A Short Survey

Giancarlo Spagnolo () and Theo Nyreröd
Additional contact information
Giancarlo Spagnolo: Stockholm Institute of Transition Economics, Postal: Stockholm Institute of Transition Economics, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden
Theo Nyreröd: Stockholm Institute of Transition Economics

Abstract: Whistleblower reward programs, or “bounty regimes”, are increasingly used in the United States. The effectiveness of these programs have been questioned, and empirical evidence on their effectiveness have been scarce likely due to their relatively recent introduction. In recent years, however, empirical and experimental evidence on their effectiveness have become more available and robust. We review the (rather encouraging) evidence on whistleblower reward programs, in terms of amount of additional information generated, deterrence effects, and administration costs, and consider the possibility of extending them to accomplice-witnesses in antitrust.

Keywords: whistleblowers; economy

JEL-codes: B26

12 pages, October 22, 2019

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