(), Martin Dufwenberg
() and Reinhard Selten
Jose Apesteguia: Public University of Navarre, Postal: Public University of Navarre, Campus de Arrosadía, 31006 Pamplona, , , ,
Martin Dufwenberg: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Reinhard Selten: University of Bonn
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.
29 pages, May 6, 2003
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