Wednesday, June 18, 2008
Posted by D. Daniel Sokol
Paolo Buccirossi, Laboratory of Economics, Antitrust, Regulation (LEAR) and Giancarlo Spagnolo, University of Tor Vergata, Stockholm School of Economics (SITE) have a very interesting article that brings together corporate governance and antitrust themes, titled Corporate Governance and Collusive Behaviour.
ABSTRACT: This chapter examines the relationship between corporate governance and competition, particularly with regard to cartel formation, and discusses how corporate governance and firm agency problems affect optimal law enforcement against cartels, both in terms of sanctions and leniency policies. Many of the conclusions appear applicable, with minor changes, to non-antitrust forms of collusion, such as collusion between auditors and management, and more generally to corporate and organized crime.