Emons, Winand - 2018 - Version: October 2018
An antitrust authority deters collusion using fines and a leniency program. It chooses the probability of an … investigation. Firms pick the degree of collusion: The more they collude, the higher are profits, but so is the probability of … inffective; it may even increase collusion. Increasing the probability of an investigation at low levels does not increase …