Abstract

http://ssrn.com/abstract=1587968
 
 

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Global Cartels, Leniency Programs and International Antitrust Cooperation


Jay Pil Choi


Michigan State University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Heiko A. Gerlach


University of Queensland - School of Economics

March 2010

CESifo Working Paper Series No. 3005

Abstract:     
In this paper we analyze cartel formation and self-reporting incentives when firms operate in several geographical markets and face antitrust enforcement in different jurisdictions. We are concerned with the effectiveness of leniency programs and the benefits of international antitrust cooperation between agencies. When international antitrust prosecution is uncoordinated, multi-market contact allows firms to reduce the amount of self-reporting in equilibrium and sustain cartels more effectively. We then discuss the effects of information sharing among antitrust authorities as a function of how much and which type of information is exchanged. We show that extensive information sharing might have an adverse effect on self-reporting by cartel members.

Number of Pages in PDF File: 33

Keywords: cartel formation, multi-market contact, leniency programs, international antitrust cooperation

JEL Classification: L13, L41, D43

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Date posted: April 15, 2010  

Suggested Citation

Choi, Jay Pil and Gerlach, Heiko A., Global Cartels, Leniency Programs and International Antitrust Cooperation (March 2010). CESifo Working Paper Series No. 3005. Available at SSRN: http://ssrn.com/abstract=1587968

Contact Information

Jay Pil Choi (Contact Author)
Michigan State University - Department of Economics ( email )
101 Marshall Hall
East Lansing, MI 48824
United States
517-353-7281 (Phone)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Heiko A. Gerlach
University of Queensland - School of Economics ( email )
Brisbane, QLD 4072
Australia
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