Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 210.00

-2.0%

Jan 7 3:59 PM EST

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To: wbmw who wrote (247861)	2/15/2008 3:35:17 PM
From: fastpathguru	Read Replies (1) of 275872

Remember your earlier premise: Intel would have to raise prices to slow demand because they wouldn't have the capacity to meet it, given your hypothetical situation involving an instantaneous disappearance of AMD. Whether you realized your own words or not, you were proposing a situation where Intel would take advantage of PRICING ELASTICITY to lower demand for their products to meet capacity constraints. It's nice of you to admit that short term, Intel could easily jack prices up. (Stubbornly clinging to the term "price elasticity" is improper here, since in this context it only refers to the response in demand to changes in price after a new demand curve has emerged once AMD has exited. It ignores, by definition, the change in demand Intel would experience with AMD's exit.) I believe even chipguy has admitted that longer-term, an Intel-without-competition would be free to slowly increase margins by controlling supply. Maybe someone has a link. fpg

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