The Impact Of Leniency Programs On Anti Competitive Behavior And Increase The Industry Output Level And The Social Benefit

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Abstract We review the recent evolution of leniency programs for cartels in the US and EU, survey their theoretical analyses, and summarize/evaluate the scarce empirical and experimental evidence available. We then look at the related experience of protecting and rewarding whistleblowers in other Þelds This paper provide a survey of the relationship between the leniency programs and cartel by providing theoretical and empirical evidences. The positive role of the leniency programs, which can help defecting the cartel, is over the negative role. Leniency programs important instrument policy. This paper survey the theoretical and empirical evidence to show the impact of the leniency programs on the anti-competitive behavior and increase the…show more content…
Cartel behavior, which refer to the firm cooperatively together, fixing price and increase the price of products, causing the social loss and market inefficient. Therefore, it is important to regulate the firms which may collude with other firm in the industry and get the higher profit, causing the consumer welfare decrease or creating the dead weight loss for the social As we know, the economic market is inefficiency if there are exist the cartels. One of the important competition laws forbid cartels is introduced in 1978 by the United States and has been revised in 1993, while leniency program is used in 2002 in European. Leniency programs provide an opportunity for the firms to reveal the information of the collusion behavior to antitrust authority before or after the investigation began and if they can bring enough evidence, the fines will be reduced.(Aubert, Rey, and Kovacic, 2003) The purpose of this survey is to provide the important effect of the Leniency Program by the Antitrust agencies on detecting the cartel activities in the European, the U.S. and Canada, by providing both the theoretic and empirical evidences. A large of articles talk about the impact of the leniency program in many aspects. For example, using a game-theory to analyze the cartel stability and the incentive to collude with other firm also decrease. In the way about the role of

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