Tuesday, June 29, 2010
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.