Intel made large loyalty payments to hp in exchange for hp, Ask an Expert

Economics

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. What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they adopted this practice?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91696640

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