ICEF/LFE Research Seminar in Finance

March 6 at 4.40 pm, room 3211 (Shabolovka st., 26)
Speaker: Chloe Le Coq (SITE Stockholm School of Economics)

On Thursday, March 6 at  4.40 pm  International College of Economics and Finance and International Labouratory of Financial Economics will hold a research seminar in Finance.
Speaker:  Chloe Le Coq (SITE Stockholm School of Economics)
Theme:  «Trust, Leniency and Deterrence»
Venue: Shabolovka st., 26, room 3211

Abstract: This paper presents results from a laboratory experiment studying the channels through which different law enforcement strategies deter cartel formation. With leniency policies offering immunity to the first reporting party, a high fine is the main determinant of deterrence, having a strong effect even when the probability of exogenous detection is zero. Deterrence appears to be mainly driven by `distrust'; here, the fear of partners deviating and reporting. Absent leniency, the probability of detection and the expected fine matter more, and low fines are exploited to punish defections. The results appear relevant to several other forms of crimes that share cartels' strategic features, including corruption and financial fraud.

Everyone interested is welcome to attend!

Pass can be ordered by:
tel. (495)772-95-90*26090
e-mail: vzheleznov@hse.ru
contact: Zheleznov Slava 

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