Predation Analysis and the FTC's Case Against Intel

Posted by D. Daniel Sokol

Dan Crane (Michigan Law) has an interesting article on Predation Analysis and the FTC's Case Against Intel.

ABSTRACT: The Federal Trade Commission's pending antitrust case against Intel challenges a number of Intel's discounting and rebating practices. The Commission appears poised to apply a cost-price test to the challenged practices, but proposes to include "fixed sunk costs" in the appropriate measure of cost. This paper explains the importance of using cost-price screens to assess unilaterally imposed prices and analyzes the futility of including sunk costs in the relevant cost measure.