MH–If AMD’s chips are really so much better than Intel’s and, as you suggest, everyone knows that, then AMD could compete against Intel’s loyalty rebates even without completely matching the discount in dollar amount. Relative quality, like relative price, reflects relative efficiency. Buyers are looking for the best price/quality combination. If AMD could offer that, then they should have no problem competing with Intel’s discounts. Now, they may argue that the discounts forced them below minimum efficient scale, but as I understand things, part of their problem was that they couldn’t meet demand even when operating at full capacity. That suggests that any failure to meet MES was not b/c of Intel’s discounts.

Thom: You may also like my quote from yesterday’s New York Times: “Europe’s case is really predicated on the idea that there will be future harm to A.M.D. It is really hard to find evidence of that now.”