Intel made loyalty payments to HP in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under antitrust laws for these payments, and Intel settled by paying $1.25 billion to AMD. The document asks what incentive conflict the loyalty payments were controlling, what advice Intel ignored adopting this practice, and why they ignored it.

1. Apply Froeb's Analytic Method: Who made the bad decision;
what information did they have, was it good, bad, unclear; and
what was their incentive?
Understanding the Robinson-Patman Act.
https://www.ftc.gov/tips-advice/competition-guidance/guide-
antitrust-laws/price-discrimination-robinson-patman
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?
Why did they ignore it?
PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA
OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN
THIS COURSE.