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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 213.43+6.2%Dec 19 9:30 AM EST
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To: combjelly who wrote (46617)7/8/2001 7:49:54 PM
From: ElmerRead Replies (4) of 275872
 
Predatory pricing is a strategic behavior that sacrifices near term profits for longer term market position. The premise is that by depriving competitors of capital, or simply building a reputation for ruthlessness that convinces potential competitors of of the futility of investing in this market, the dominant firm can eliminate competition and eventually return to charging monopoly prices without the worry of being undercut by competitors. That is the model that Intel has adopted this last year. It is, by the way, illegal for a company with Intel's market share to price this way, though the current Antitrust division probably won't do anything about it.

How convenient to make up a definition to suit your purposes. It's just plain nonsense. Intel cannot be accused of predatory pricing(except of course by an AMDolt) from a higher price point than AMD. One does not wage a price war from above. It is AMD who is practicing predatory pricing and always has been. No one can reasonably fault Intel for simply trying to hold on to market share. They didn't start the price war but they are allowed to respond when challenged. Competition means competition and Intel is allowed to compete. It the perverse AMDolt view, competition is only fair when Intel is not allowed to respond.
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