Leniency clauses, offering cartelists legal immunity if they blow the whistle on each other, is a recent anti-trust innovation. The authorities wish to thwart cartelsand promote competition. This effect is not evident, however; whistle-blowing mayenforce trust and collusion by providing a tool for cartelists to punish each other. Weexamine the impact of leniency law, and other rules, theoretically and experimentally.
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