Buccirossi, Paolo; Spagnolo, Giancarlo - 2005 - First version: October 1999, Final version: September 8, 2005
We study the consequences of leniency - reduced legal sanctions for wrongdoers who spontaneously self-report to law enforcers - on sequential, bilateral, illegal transactions, such as corruption, manager-auditor collusion, or drug deals. It is known that leniency helps deterring illegal...