Optimal Leniency Programs
Data
01.01.2000
01.01.2000
Autori
Giancarlo Spagnolo
Codice JEL
K42,K21
K42,K21
Parole chiave:
Self reporting,law enforcement,antitrust,cartel deterrence,crime deterrence,organised crime,collusion,corruption,illegal trade
Self reporting,law enforcement,antitrust,cartel deterrence,crime deterrence,organised crime,collusion,corruption,illegal trade
Publisher
Economy and Society
Economy and Society
Editor
Fausto Panunzi
Fausto Panunzi
Leniency programmes reduce sanctions for law violators that self-report. We focus on their ability to deter cartels and organised crime in general by increasing incentives to "cheat" on partners. Moderate leniency programmes that reduce/cancel sanctions for the reporting party cannot affect organised crime. Courageous leniency programmes that reward self-reporting parties may completely and costlessly deter it. When fines/rewards are pure transfers, optimal leniency programmes maximise rewards for self-reporting. When financing rewards are costly, optimal leniency programmes are restricted to the first reporting party, and make this residual claimant for the fines paid by the others.