Leniency Policies Fuel Collusion by Encouraging Cartel Ringleadership
The study looked at how leniency policies affect cartel formation. Leniency policies that don't protect cartel leaders might make it harder to form cartels. In an experiment, more companies became leaders when leniency policies were discriminatory, making it easier for cartels to coordinate. Whistleblowing was rare, even though theory says cartels should always be reported.