The Federal Trade Commission's pending antitrust case against Intel challenges a number of Intel's discounting and rebating practices. The Commission appears poised to apply a cost-price test to the challenged practices, but proposes to include "fixed sunk costs" in the appropriate measure of cost. This paper explains the importance of using cost-price screens to assess unilaterally imposed prices and analyzes the futility of including sunk costs in the relevant cost measure.
Antitrust and Trade Regulation | Business Organizations Law
Date of this Version
Working Paper Citation
Crane, Daniel A., "Predation Analysis and the FTC’s Case against Intel" (2010). Law & Economics Working Papers. 16.