Study On The Stability Of The Horizontal Monopoly Agreement Under The Leniency Program

With the development of world economy and economic exchanges between multinational companies continue to strengthen,monopoly agreements show the characteristics of the complexity and diversity,especially the horizontal monopoly agreements.The damage caused by these agreements is more serious.All countries in the world are actively exploring the more effective way to prevent and crack down the horizontal monopoly agreements which in foreign country are called cartels.The practice has proven that the American system of leniency,which originated in 1978,is the most effective.Because most monopoly agreements have the characteristic of concealment,anti-trust authority confronts lot of hindrances when investigate and obtain evidence.But leniency program can be a very good solution to this problem.Anti-trust authority provides a certain amount fine credit,in some country even the relief of criminal responsibility,to monopoly agreements participants to get the useful information about the agreement.In this way,authority can break down monopoly agreements more easily and effective.China also introduced the leniency program in the 2008 anti-monopoly law,which provides a powerful tool for the detection of monopoly agreements in recent years.Monopoly agreements,abuse of dominant market position and concentration are considered to be three most popular monopolies,among them the monopoly agreements have the most diverse in the forms,the implementation of the hidden,and the largest harm to competition and economy.The production of the system provides an effective way for the investigation of monopoly agreement.The economic basis of the forgiveness system is the prisoner's dilemma and the winner is the two game theories.There is inherent instability in the monopoly agreement in itself,and the emergence of the system of forgiveness has undoubtedly added another layer of instability to the monopoly agreement.Although relative to foreign countries,there are some problems in the implementation of the system of forgiveness in China and some difficulties in information disclosure.But we need to see that the practice of any system is a process of gradually improve,forgiveness system in the United States,the European Union and other developed countries is not achieved overnight,but step by step,and constantly improve.In conclusion,it is believed that in the near future,our country's forgiveness system will become more perfect,which will play an inestimable role in the investigation of our monopoly agreement and the fairness of market economy.In this paper,we study the stability of horizontal monopoly agreements under leniency program based on the present situation and existing problems of our country's forgiveness system.We study monopoly agreement's self-instability,to understand how leniency program can play a role in anti-trust more deep.Finally,combining the model and the problems of our country's forgiveness system,we propose a path to improve the system of forgiveness.The innovation of this paper is that we study how the characteristics of penalty factor and demand factor affect horizontal monopoly agreements on the stability of the transmission mechanism,analyzes the two factors would encourage members under what conditions will choose to maintain a monopoly.By means of the implementation of the model and the forgiveness system in China at present situation analysis,the article concluded that under the forgiveness system,the influence factors of horizontal monopoly agreements stability.It is recommended for the improvement of the system of forgiveness perspective,in view of the model reflects the problems and puts forward the path of improve the system of forgiveness.