(Answered) Intel made large loyalty payment to hp in exchange for hp

Economics

Intel made large loyalty payment to HP in exchange for HP buying the most of their cips 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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Business Economics, Economics

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