Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, January 17, 2012

Evaluating Leniency Programs in Antitrust

Posted by D. Daniel Sokol

Joan Ramon Borrell (Universitat de Barcelona) Juan Luis Jimenez (Universidad de Las Palmas de Gran Canaria) and Carmen Garcia (Universidad de Las Palmas de Gran Canaria) have written on Evaluating Leniency Programs in Antitrust.

ABSTRACT: This paper identifies and quantifies econometrically the impact of leniency programs on the perception of effectiveness of antitrust policy using country level panel data evidence for a 10 year span. Leniency programs have been introduced gradually but steadily in antitrust legislation across the globe to fight more effectively against cartels. We use the dynamics of the diffusion of such policy innovation across countries and time to evaluate the impact of the program. We find that leniency programs have had a significant impact on the perception of the effectiveness of each country antitrust policy by business persons. Leniency programs have turned to be weapons of mass dissuasion in the hands of antitrust enforcers against the more damaging forms of explicit collusion among rival firms in the market place.

Download Leniency_borrell_jimenez_garcia_jan2012

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