Ascione, Aurora and Motta, Massimo (2008): Settlements in cartel cases. Published in: In Claus-Dieter Ehlermann and Mel Marquis (eds.), European Competition Law Annual 2008: Antitrust settlements under EC Competition Law, Oxford: Hart Publishing (2010): pp. 67-83.
Download (367kB) | Preview
There is little doubt that the fight against cartels is one of the most important objectives of Antitrust Authorities, and the European Commission (EC herewith) represents no exception in this regard. While the Leniency Policy has been successful in triggering evidence by cartel participants and thus in determining the collapse of several cartels, it has not reduced considerably the length of the cartel proceedings, which is another potential benefit of leniency programmes. In this paper we find that a 10% fine reduction to firms which agree to settle with the Commission may be too weak an incentive for firms to settle. This means that the settlements participation rate will not be high enough to effectively reduce the duration of cartel proceeding.
|Item Type:||MPRA Paper|
|Original Title:||Settlements in cartel cases|
|Subjects:||L - Industrial Organization > L4 - Antitrust Issues and Policies > L41 - Monopolization ; Horizontal Anticompetitive Practices
K - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust Law
|Depositing User:||Aurora Ascione|
|Date Deposited:||22. Sep 2010 14:24|
|Last Modified:||31. Dec 2015 02:37|
Adelstein, R. P. (1978) “The Plea Bargain in Theory: A behavioral Model of the Negotiated Guilty Plea”, Southern Economic Journal, January, 44, 488-503.
Cooter, R., Marks, S., Mnookin, R. (1982) “Bargaining in the shadow of the law: a testable model of strategic behavior”, Journal of Legal Studies, 2, 225-251. Easterbrook, F. (1983) “Criminal Procedure as a Market System”, Journal of Legal Studies, 12, 289-332.
Franzoni, L. (1999) “Negotiated Enforcement and Credible Deterrence”, Economic Journal, 109, 509- 535.
Hay, B. L., Spier, K. E. in Newman, P. K. (1998) “The new Palgrave dictionary of economics and the law”, London: Macmillan Reference; New York: Stockton Press. La Casse, C., Payne, A. (1999) “Federal Sentencing Guidelines and Mandatory Minimum Sentences: Do Defendants Bargain in the Shadow of the Judge?”, Journal of Law and Economics, 42, 245-269.
Landes, W. M. (1971) “An Economic Analysis of the Courts”, Journal of Law and Economics, April, 14, 61-108.
Langus, G., Motta, M. "On the Effect of EU Cartel Investigations and Fines on the Infringing Firms’ Market Value", in Claus-Dieter Ehlermann and Isabela Atanasiu (eds.), Enforcement of Prohibition of Cartels, Hart Publishing, 2007, pp. 363-376.
Miceli, T. J. (1996) “Plea Bargaining and Deterrence: An Institutional Approach”, European Journal of Law and Economics, 3, 249-264.
Motta, M., Polo, M. (2003) “Leniency Programs and Cartel Prosecution”, International Journal of Industrial Organization, 21(3), 347-379, March.
Posner, R. (1973) “An economic approach to legal procedure and judicial administration”, Journal of Legal Studies, 2, 399-458.