Journal Article

EVALUATING ANTITRUST LENIENCY PROGRAMS

Joan-Ramon Borrell, Juan Luis Jiménez and Carmen García

in Journal of Competition Law & Economics

Volume 10, issue 1, pages 107-136
Published in print March 2014 | ISSN: 1744-6414
Published online August 2013 | e-ISSN: 1744-6422 | DOI: http://dx.doi.org/10.1093/joclec/nht017
EVALUATING ANTITRUST LENIENCY PROGRAMS

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  • Law and Economics
  • Antitrust Issues and Policies
  • Economic Growth and Aggregate Productivity
  • Analysis of Collective Decision-making

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This article identifies and then quantifies econometrically the impact of leniency programs on the perception of the effectiveness of antitrust policies in the business community using panel data for as many as 59 countries during a 14-year span. We use the dynamics of the gradual diffusion of leniency programs across countries and over time to evaluate the impact of the program, taking care of the bias caused by self-selection into the program. We find that leniency programs increase the perception of effectiveness by an order of magnitude ranging from 10 percent to 21 percent. Leniency programs have become weapons of mass dissuasion in the hands of antitrust enforcers against the more damaging forms of explicit collusion among rival firms in the market place.

Keywords: D7; K2; L4; O4

Journal Article.  9188 words.  Illustrated.

Subjects: Law and Economics ; Antitrust Issues and Policies ; Economic Growth and Aggregate Productivity ; Analysis of Collective Decision-making

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