Endogenous Firms' Organization, Internal Audit and Leniency Programs
38 Pages Posted: 16 Sep 2015
Date Written: September 7, 2015
When multi-product firms make simultaneous price-fixing agreements on different markets, they may wish to compartmentalize their agreements managing them with different individuals in order to avoid the contagion of antitrust authority investigations. Sometimes the leniency programs are efficient to defeat this strategy and to induce CEO to launch internal investigations and report the obtained hard evidence to the antitrust authority. However these programs may have pro-collusive effects for centralized firms.
Keywords: Collusion, antitrust policy, leniency programs, multimarket contact, organizational form
JEL Classification: K42, L22, L41
Suggested Citation: Suggested Citation