In Eastman Kodak V

question 309

Multiple Choice

In Eastman Kodak v. Image Technical Services, Kodak was charged with tying the sale of service of their copiers and other equipment to the sale of parts. The Supreme Court ruled:

• A) no tying arrangement existed because the markets for service and sale of parts overlapped
• B) a tying arrangement existed and Kodak had potential monopoly power
• C) a tying arrangement existed, but Kodak held a small share of the market for service and parts, so rule of reason analysis allowed the arrangement to stand
• D) no tying arrangement existed because independent service organizations could purchase Kodak parts from Kodak whenever they so desired
• E) no tying arrangement was proved to have existed, so there could be no antitrust illegality

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Definitions:

Nash Equilibrium

A concept in game theory where each participant's strategy is optimal, given the strategies of all other participants, leading to a situation where no participant can benefit by changing strategies unilaterally.

Credible Threats

A declaration or signal that one party can make to convey they are prepared to follow through with a promised action if certain conditions are not met.

Extensive Form

Extensive form represents a way of describing a game in game theory, showcasing the sequential nature of players' decisions and possible strategies.