14 Pages Posted: 12 Jun 2013
Date Written: March 2013
We examine the impact of the ACCC's leniency policy (Immunity Policy) on cartel stability. The policy, by reducing the fines of the first cartel members who cooperate with competition authorities, can act to deter collusion. However, we find that care is needed in how a leniency policy is implemented. It is possible that the leniency policy can make collusion easier to sustain than in its absence. Further, the ACCC's Cooperation Policy, which applies to all parties who assist the Commission with an investigation, can act to undermine the effectiveness of the leniency policy.
Suggested Citation: Suggested Citation
Gray, Anthony and Wait, Andrew and Nguyen, Bonnie, The Prodigal Corporation: An Analysis on the Effectiveness of the ACCC's Immunity Policy for Cartel Conduct (March 2013). Australian Economic Papers, Vol. 52, Issue 1, pp. 38-51, 2013. Available at SSRN: https://ssrn.com/abstract=2278037 or http://dx.doi.org/10.1111/1467-8454.12006
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