Slowdown Antitrust Investigations by Decentralization
30 Pages Posted: 15 Jun 2020
Date Written: May 20, 2020
When multi-product firms make simultaneous price-fixing agreements in different markets, the introduction of leniency programs may induce firms to compartmentalize their activities. Doing so results in slowdown antitrust investigations and decentralized ﬁrm can easily request leniency for a second cartel after the detection of an other. We study how variation of fine reduction may produce procompetitive but also procollusive effects.
Keywords: Collusion, antitrust policy, leniency programs, multimarket contact, organizational form
JEL Classification: K42, L22, L41
Suggested Citation: Suggested Citation