Thursday, July 9, 2020
Emilie Dargaud, University of Lyon 2 and Armel Jacques, Université de la Réunion suggest to Slowdown Antitrust Investigations by Decentralization.
ABSTRACT: 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.