Loyalty payments-intel made large loyalty payments

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Loyalty Payments: Intel made large loyalty payments to Hewlett Packard (HP) in exchange for HP buying most of their chips from Intel instead of rival AMD. AMD sued Intel under the anti-trust laws, and Intel settled the case by paying $1.25 billion to AMD. What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they adopted this practice? Why?

Reference no: EM13994588

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