Antitrust & Competition Policy Blog

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

Thursday, July 9, 2020

Slowdown Antitrust Investigations by Decentralization

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.

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