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Discussion

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Apply  Froeb’s Analytic Method:  Who made the bad decision; what information  did they have, was it good, bad, unclear; and what was their incentive? 

Understanding the Robinson-Patman Act.   https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patman

Intel  made large loyalty payments to HP in exchange for HP buying most of  their chips from Intel instead of rival AMD. AMD sued Intel under the  antitrust laws, and Intel settled the case by paying $1.25 billion to  AMD.

  • What incentive conflict was being controlled by these loyalty payments?
  • What advice did Intel ignore when they adopted this practice?
  • Why did they ignore it?
 
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