Week 10 Discussion - Froeb's, Price Discrimination

Week 10 - Froeb's

This week's discussion will ask you to apply Froeb's analytic method to a real-life example. Part of this example is related to the Robinson-Patman Act. Review the following to prepare for the discussion:

• Price Discrimination: Robinson-Patman ViolationsLinks to an external site..
• Lessons From the Wreck of the Torrey CanyonLinks to an external site..

Your instructor may also post additional resources to help further explain concepts related to this week's discussion.

Context

This week's discussion will provide you with an opportunity to apply Froeb's analytic method.

Keep the following in mind:

1. Who made the bad decision?
2. What information did they have? Was it good, bad, or unclear?
3. What was their incentive?

Instructions

Read the following and then respond to the discussion prompt:

• Intel made large loyalty payments to HP in exchange for HP buying most of its 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.