Reference no: EM132541752
Assignment: Read the example in the discussion instructions while keeping in mind the following questions:
- Who made the bad decision?
- What information did they have? And was it good, bad, or unclear?
- What was their incentive?
Respond to the discussion prompt.
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.
Address the following:
- What incentive conflict was being controlled by these loyalty payments?
- What advice did Intel ignore when they adopted this practice?
- How did the Robinson-Patman Act apply to their practice?
- Why did they ignore the advice?
Do not use Wikipedia, Investopedia, or any similar website as a reference or supporting source.
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