A number of recent antitrust lawsuits have been settled with discount contracts in which the defendants agree in the future to sell to the plaintiffs at a discount off of the price they offer to other buyers. Economists often object to such settlements, arguing that the sellers will partially or...

Loyalty discounts pervade our economy, but may expose unsuspecting businesses to antitrust liability. This paper explains that the antitrust law governing these discounts is unclear, confusing, and constantly changing. The structure of the loyalty discount will determine how a court is likely to...

In this paper, we explore the competitive significance of both bundled and loyalty discounts. The paper proceeds as follows. In Section II, we examine the antitrust treatment of both bundled discounts and loyalty discounts in the United States. In Section III, we examine bundled discounts and...