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To: combjelly who wrote (259611)	4/8/2009 3:34:38 PM
From: Saturn V	Respond to of 275872

Or are you working on the assumption that because some types of volume discounts are legal, they all are? Can you define what kind of discounts are illegal ? As far as I am aware two kind of discounts are illegal. 1. Discounts by a dominant supplier which are below its marginal cost. Marginal cost has been interpreted by the courts to mean the Average Variable Cost. 2. Bundling discounts by a dominant supplier. A dominant supplier or a monopolist is forbidden to bundle the product with other products to gain market share in the other products.The intent is to prevent the monopolist from using the hidden discount on the monopolized product to increase share in other product lines. (For example Microsoft probably got into trouble by bundling the Desktop Windows , where it had no competitor, with the Server version, which faced greater competition. If Intel bundled Larabee with a very popular Nehalem or Atom, it might create problems.) Can you cite other illegal discounts ?