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To: Windsock who wrote (237894)	7/31/2007 9:42:18 PM
From: graphicsguru	Respond to of 275872

Above cost loyalty discounts in a single product setting -- such as those used by Intel – are viewed as a pro-consumer form of price competition. I suppose that depends on what you regard as a single product. Are low-speed and high-speed P4's a single product? Are centrino and desktop parts a single product? Xeons? Seems to me that different processor models are at least as different as different kinds of tape. Considering the range of prices, I think it would be difficult to claim they're the same product. Note that the LePage case involved distinguishing high-end tape from discount tape.

To: Windsock who wrote (237894)	8/1/2007 10:04:12 AM
From: fastpathguru	Respond to of 275872

Above cost loyalty discounts in a single product setting -- such as those used by Intel – are viewed as a pro-consumer form of price competition. Nice selective quoting, your quote is referring to loyalty rebates aimed at end-users, which is NOT "such as those used by Intel." See Page 3: "And in contrast to loyalty programs aimed at end users, loyalty discounts at the wholesale level have been successfully challenged under the antitrust laws, and have generated interest in the academic community. The primary focus of this recent literature is on the use of loyalty programs as a way to exclude competitors. Loyalty programs exclude by giving strong incentives for distributors to purchase a large share from one supplier." fpg