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1. Why might it be very difficult to test potential price war triggers for the JEC (or any other cartel for that matter)?
2. Explain the potential role that the DOJ's leniency program might have on prosecutions and incentives for price fixing. The leniency program began in 1993 and provides amnesty to the first firm that reports a price-fixing conspiracy.25
25 S. Garland and E. Thompson, "Justice's Cartel Crackdown," Business Week 27 July 1998: 50-51.
FIRM
1967
1977
1987
A
200,000
625,000
1,000,000
B
12,500
750,000
1,250,000
C
500,000
D
250,000
E
375,000
-
F
2,000,000
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