They propose that financial incentives be offered to individuals or firms participating in illegal activity in return for the provision of evidence against other participants. In order to ensure that attractive incentives can be offered, and large fines levied, it is also proposed that a revenue contingent payment mechanism be utilised to extract both incentive payments and fines from firms and individuals convicted of these offences. The use of a revenue contingent penalty payment increases the certainty of collecting penalties while reducing the incentive for recourse to bankruptcy.

Bruce Chapman is a research fellow at Australian National University