Document: 509 U.S. 209 113 S.Ct. 2578 125 L.Ed.2d 168 BROOKE GROUP LTD., Petitionerv.BROWN & WILLIAMSON TOBACCO CORPORATION. No. 92-466. Argued March 29, 1993. Decided June 21, Rehearing Denied Aug. 9, Syllabus * Cigarette manufacturing is a concentrated industry dominated by only six firms, including the two parties here. In 1980, petitioner (hereinafter Liggett) pioneered economy segment of market developing line generic cigarettes offered at list price roughly 30% lower than that branded cigarettes. By 1984, generics had captured 4% market, expense cigarettes, and respondent Brown Williamson entered segment, beating Liggett's net price. Liggett responded in kind, precipitating war, which ended, according to Liggett, with selling its loss. filed this suit, alleging, inter alia, volume rebates wholesalers amounted discrimination reasonable possibility injuring competition violation § 2(a) Clayton Act, as amended Robinson-Patman Act. claimed were integral predatory pricing scheme, set below-cost prices pressure raise on generics, thus restraining segment's growth preserving Williamson's supracompetitive profits After jury returned verdict favor District Court held was entitled judgment matter law. Among other things, it found lack injury because there been no slowing generics' rate tacit coordination various manufacturers. affirming, Appeals dynamic conscious parallelism among oligopolists could not produce competitive setting. Held: Pp. ____. (a) The terms, condemns extent threatens injure competition. A claim primary-line under type alleged here, same general character 2 Sherman Act: business rival has priced products an unfair manner object eliminate or retard thereby gain exercise control over relevant market. Utah Pie Co. v. Continental Baking Co., 386 685, 87 1326, 18 406, distinguished. Accordingly, prerequisites recovery are also same. plaintiff must prove (1) complained below appropriate measure rival's costs (2) competitor prospect recouping investment prices. Without recoupment, even if causes target painful losses, produces aggregate consumer welfare enhanced. For recoupment occur, be capable, threshold matter, producing intended effects firm's rivals. This requires understanding duration predation, relative financial strength predator victim, their respective incentives will. inquiry whether, given losses caused pricing, would likely succumb. If so, then further question whether demonstrate likelihood scheme cause rise above level sufficient compensate for amounts expended time value money invested it. Evidence alone permit inference probable determination estimate predation's cost close analysis both market's structure conditions. Although easy establish, these essential components real injury. (b) An oligopoly's interdependent may provide means achieving form basis claim. Predatory schemes, general, implausible, see Matsushita Electric Industrial Zenith Radio Corp., 475 574, 588-590, 106 1348, 1356-1358, 89 538 more improbable when they require coordinated action several id., 590, S.Ct., 1358. They least occur where, cooperation firms tacit, since effective difficult achieve; high any attempt one oligopolist discipline cutting will outbreak competition; predator's present fall alone, while later shared every proportion share, victim. Nonetheless, Act suggests exclusion from coverage occurs oligopoly setting, declines create per se rule nonliability. order all Act's words carry adequate meaning, extend beyond monopoly (c) record case demonstrates alleged, judged against realities, does finding liability. While conclude envisioned anticompetitive course events months, evidence inadequate show pursuing recovering through generics. No sustainable record, obtain power level, indispensable aspect own proffered theory. output information indicate oligopolistic fact produced segment. Nor about conduct have brought 964 F.2d 335 (CA 4 1992) affirmed. KENNEDY, J., delivered opinion Court, REHNQUIST, C.J., O'CONNOR, SCALIA, SOUTER, THOMAS, JJ., joined. STEVENS, dissenting opinion, WHITE BLACKMUN, Phillip Areeda, Cambridge, MA, petitioner. Robert H. Bork, Washington, DC, respondent. Justice KENNEDY Court. 1 stems struggle erupted domestic cigarette mid-1980's. Petitioner Brooke Group, Ltd., whom we, like case, refer former corporate name, charges counter innovative development Tobacco Corporation introduced unlawful effort stifle national contends cut discriminatory force introduce We hold introducing "black white" sometimes called characterized bargain comprises variety different products: black whites, true sold plain white packages simple lettering describing contents; private label trade dress specific purchaser, usually retail chain; brand name but which, whites deep discount little advertising; "Value-25s," 25 some 12.5% normal 20-cigarette pack. motion series giving represented 97% turn accounted sales. Prior introduction sales less 1% 3 Because procedural posture we view light most favorable Liggett. basic agreement, however, regarding central, historical facts. long America's industries, F. Scherer D. Ross, Market Structure Economic Performance 250 (3d ed. 1990) Ross); App. 495-498, decades, production firms: R.J. Reynolds, Philip Morris, American Brands, Lorillard, litigants involved Williamson. Reynolds leaders, enjoyed shares 28% 40% trial. ran distant third, share never exceeding 12% dispute. less, low just 2% 1980 5% 1984. profitable, part many years significant firms. See Ross 250-251; R. Tennant, Industry 86-87 (1950); 128, 500-509, 531. List increased lock-step, twice year, number years, irrespective inflation, changes production, shifts demand. Substantial recent reaped benefits though once industry. supra, 275, 342; 389-392, 514-519, 658-659; cf. United States, 328 781, 66 1125, 90 L.Ed. 1575 (1946); States 221 106, 31 632, 55 663 (1911); 451. 5 broad trends working Overall demand declining, immediate existed. As shrank, developed substantial excess capacity. decline demand, coupled nonprice competition, severe negative impact Once major industry, 20%, declined 2%. With meager verge going out business. 6 At urging distributor, took unusual step revive prospects: It When consumers full-priced, promoted wholesale ordered. Black new marketing category. category's principal characteristic considerable success, growing fraction percent total early 7 expanded, companies themselves unable ignore came firms' profitable hardest hit, brands favored who sensitive 11.4% 20% converts switched brand. Losing products, determined enter July 1983, begun Value-25s, spring cigarette. 8 neither first nor company recognize threat posed respond Value-25 1983. And before repriced "Doral" levels. To compete dropped Doral used incentive spur orders. level. 9 entry graver dominance Unlike Reynolds' Doral, product so direct shelf. fungible, line. unlike matched beat them. suggested Liggett's, discounts larger. rebate encompassed greater categories highest carrying special orders very size. marketed existing distributors well full buyers, included thousand yet carried products. 10 ways. First, rebates. precipitated war five times attempted end each round, maintained advantage undisputed original costs, occurred single 11 second response file lawsuit. Two weeks after announced into again complaint Middle North Carolina alleging trademark infringement add antitrust 49 Stat. 1526, 15 U.S.C. 13(a), illegal between full-priced low-priced Inc. 1989-1 Trade Cas. (CCH) ¶ 68,583, p. 61,099, 1988 WL 161235 (MDNC 1988). These claims either dismissed summary judgment, rejected jury. appealed. 12 claim, subject controversy. 2(a). reduced average variable costs. According promotional percentage difference narrow. explained reduce without losing Williamson; choice, wished avoid prolonged line, resulting reduction gap, said, restrain preserve 13 trial began 1989. time, fastest having began, 15% interest shifted toward overall steadily billion sold. Overall, 2.8 1981 become 80 14 along output. established remained stable. But 1985, raised price, followed months later. precise effect increase assess, discounts, coupons, promotions directly portion reflected higher consumer. December prices, retracted adhered Thus, 1985 increase, did change until summer 1986, pattern yearly increases tandem established. dollar amount resulted expensive narrowing gap approximately 38% 27% Also trial, manufacturers, so-called "subgenerics," category 50% off 16 115-day involving almost 3,000 exhibits score witnesses, engaged whole. awarded $49.6 million damages, trebled $148.8 million. reviewing law three separate grounds: causal link 748 F.Supp. 344 1990). respect issue, us, possible unless Id., 354-355. come conclusion existence such contending segment: exist, therefore limiting 356-358. 17 Fourth Circuit (1992). necessarily involves oligopolists. 342. Appeals' view, "[t]o rely characteristics assure made move . economically irrational." Ibid. granted certiorari, 506 ----, 490, 121 428 (1992), now affirm. II A. 19 Price 38 730, provides: 20 "It shall person commerce, indirectly, discriminate purchasers commodities grade quality where substantially lessen tend injure, destroy, prevent grants knowingly receives benefit discrimination, customers them." 13(a). 21 reiterated " 'a within meaning [this] provision merely difference,' Texaco Hasbrouck, 496 543, 558, 110 2535, 2544, 492 (1990) (quoting FTC Anheuser-Busch, Inc., 363 536, 549, 1267, 1274, 1385 (1960)), statute practical not, ban differences charged "different quality." Instead, contains important limitations, central evaluating claim: availability statutory defenses permitting based "changing conditions affecting marketability goods concerned," ibid., undertaken "in good faith meet equally competitor," 13(b); Standard Oil FTC, 340 231, 250, 71 240, 95 239 (1951), confirms Congress intend outlaw result forces "the should construed consistently broader policies laws." Great Atlantic Pacific Tea 440 69, 80, n. 13, 99 925, 933, 59 153 (1979). Automatic Canteen America 346 61, 63, 74, 73 1017, 1019, 1025, 97 1454 (1953). 22 threatened furthering designed purge injury, harms competitors discriminating seller, known U.S., 538, 1268-1269. last addressed primary ago, 406 (1967). Pie, reviewed sufficiency supporting verdicts pie practices frozen pies Salt Lake City, intent drive local manufacturer reversed presented find 703, 1336. 23 often interpreted liability mere showing defendant harm declining structure. criticized grounds standards odds laws' traditional concern Bowman, Restraint Supreme Court: Case, 77 Yale L.J. 70 (1967); Posner, Antitrust Law: Perspective 193-194 (1976); L. Sullivan, 687 (1977); P. Areeda Turner, Law 720c (1978) Turner); Paradox 386-387 (1978); Hovenkamp, Economics Federal 188-189 (1985). do regard itself significance attributed detractors. judicial area purport forth explicit, establishing explored evident inflicted schemes actionable See, e.g., Henry Chloride 809 1334, 1345 (CA8 1987); D.E. Rogers Associates, Gardner-Denver 718 1431, 1439 (CA6 1983), cert. denied, 467 1242, 104 3513, 82 822 (1984); William Inglis Sons ITT 668 1014, 1041 (CA9 1981), 459 825, 103 57, 58, 74 61 (1982); Malcolm Marathon 642 845, 853, (CA5), 454 102 975, (1981); Engineering Production Nevada Kerr-McGee 551 790, 798 (CA10), 434 879, 98 234, 54 160 International Telephone Telegraph F.T.C. 280, 401-402 189; Turner 720c; (Supp.1992) Hovenkamp). There are, sure, statutes. example, interpret condemn poses "a dangerous probability actual monopolization," Spectrum Sports, McQuillan, 884, 890, 122 247 (1993), whereas possibility" protections triggered. Falls City Industries, Vanco Beverage, 460 428, 434, 1282, 1288, 75 174 (1983). whatever additional flexibility standard imply, essence same: 24 alleges remain seeking establish costs.1 Cargill, Monfort Colorado, 479 104, 117, 107 484, 493, 93 427 (1986); 585, 8, 1355, 698, 701, 702-703, 14, 1333, 1335, 1335-1336, 14; re E.I. DuPont de Nemours 96 653, 749 (1980). Cf. National Dairy Products 372 83 594, 561 (1963) (holding constitute "unreasonably low" purposes 13a). Cargill reserved formal 'whether ever available incremental cost,' 117-118, 12, Matsushita, 9), reasoning opinions suffice, elsewhere notion above-cost levels inflict cognizable laws. Richfield USA Petroleum 495 328, 340, 1884, 1891, 109 333 (1990). "Low regardless how those set, levels, threaten principle involved." rule, exclusionary reflects predator, represents merits, ability tribunal courting intolerable risks chilling legitimate price-cutting. Hovenkamp &Par; 714.2, 714.3. "To laws protect loss due would, effect, render decision firm share. perverse result." 116, 492. Even drops maverick unprofitability straying group, illogical cut: obstacle chain conducive breakdown onset ultimate induce reestablish discouraging forcing maintain depriving interim, sound policy. 714.2d, 714.2f; Pricing Related Practices Section 88 Harv.L.Rev. 697, 708-709 (1975); Perspective, 195, 39. 26 prerequisite holding liable charging demonstration prospect, or, probability, 589, 1357; 119, 15, 494, 15. "For rational, [predator] expectation recovering, profits, suffered." 588-589, 1356-1357. Recoupment scheme; predation. it, unsuccessful encourage inefficient substitution being cost, predation boon consumers. 27 That impose moment injured: axiomatic passed protection competitors." Shoe 370 294, 320, 1502, 1521, 510 (1962). Earlier Term, context enough inquire "whether 'unfair' 'predatory' tactics"; rather, insisted [the defendant] monopolize particular market." 892. act pure malice another more, state federal laws; "purport afford remedies torts committed persons interstate commerce." Hunt Crumboch, 325 821, 826, 65 1545, 1548, 1954 (1945). 28 rivals, driving them goal causing disciplined oligopoly. 711b. 29 circumstances target, still observed prior occasion, "[i]n recoup [predators] sustain earn what earlier gave up prices." 590-591, 30 Determining Cf., Elzinga Mills, Testing Predation: Is Feasible?, 34 Bull. 869 (1989) (constructing model recoupment). deficiencies proof bar sustained plaintiff's failed. certain situations—for highly diffuse competitive, easy, lacks capacity absorb his rivals cannot quickly purchase capacity—summary disposition appropriate. 119-120, artificial obstacles recovery; said context, "predatory rarely tried, successful," 1357, erroneous high. "[T]he mechanism engages pricing—lowering —is stimulates 'cutting .[;] mistaken inferences especially costly, chill protect.' 122, 17, 495, 1360). ironic indeed suits became tool keeping B 32 allege sought pressuring process collusion companies. Tacit collusion, parallelism, describes process, unlawful, might power, setting profit-maximizing, recognizing economic interests interdependence decisions. 404; 199-208. 33 remarked upon implausibility pricing. 1356-1358. allegation express conspiracy engage noted addition usual difficulties face attempting problems "incalculably execute." succeed, conspirators agree allocate future gains involved, resist powerful cheat agreement reached. However unlikely multiple conspire, when, coordination. Firms seek uncertain ambiguous signals achieve concerted action. misinterpretation blunt imprecise ensuring smooth cooperation, changing unprecedented circumstances. minuet compose perform, 35 From standpoint, thought feasible monopoly: victim acquiesce scheme. forced choose sustaining maintaining raising enjoying yield alternative. Yet whole, considered losses. difficulty Williamson, 11-12% generate around $9 $1 predation; remaining $8 belong competitors, taken risk. 36 considerations led theory proper interpretation free doubt, indication reach provides recoupment. contain apparatus review; focuses theoretical legal arguments. final paragraph appears holding: "provide rational basis" F.2d, 37 disagree. stable oligopoly, successful, can way, extent, bring monopoly. realities facts succeeded, stand way Eastman Kodak Image Technical Services, 504 112 2072, 119 265 provisions speak forms monopoly, §§ 1-2, phrased broader, disjunctive prohibiting "where monopoly." Reiter Sonotone 442 330, 339, 2326, 2331, 60 931 (1979) ("Canons construction ordinarily suggest terms connected meanings, dictates otherwise."). language referring lessening 2, October 1914, ch. 323, phrasing settled excessive concentration, portends, prohibits. Philadelphia Bank, 374 321, 1715, 915 (1963). adhere identical parts meaning." Sullivan Stroop, 478, 2499, 2504, 438 (internal quotations omitted). J. Truett Payne Chrysler Motors 451 557, 562, 101 1923, 1927, 68 (1981) (evaluating requirement analogous interpretations 7). nonliability take place 121, 495. III 39 liability, abstract statute, submit customary review evidence, issue properly us providing guidance concerning application avoiding systemic associated proceedings justify required expenditure resources. Aspen Skiing Highlands 472 605-611, 105 2847, 2859-2861, 86 (1985); Monsanto Spray-Rite Service 465 752, 765-768, 1464, 1471-1472, 79 775 Pabst Brewing 384 546, 550-552, 1665, 1668-1669, 765 (1966). 40 depends complex effect: matching massive, directed biggest wholesalers; result, costs; suffer trying defend customer base rebates; leadership shrink cigarettes; make appealing consumer, reducing cannibalization profits. 41 regarded procompetitive events. 57-58, 67-68, 89-91, 99, 112-114, 200, 241, 253, 257, 262-263, 279-280, 469-470, 664-666. period 338-339, 651, 740, imposed unwilling sustain, parent's locate buyer company. 92, 596-597. failed law, flawed critical respect: noted, "[t]he success harvest gain." 1357 (emphasis 42 Williamson—whatever been—was theory, results anticompetitive. Only nonmarket suffered. supply, slows patterns preference stable, functioning manner. Consumers injured perspective increases; linchpin ability, oligopolists, relying "highly speculative," 711.2c, 647, competent necessary allow authentic insufficient danger 43 Based created, infer losses: first, indicates segment; second, actually so. 44 data support elevated Supracompetitive entails restriction Collegiate Athletic Assn. Board Regents University Oklahoma, 468 85, 104-108, 2948, 2962-2963, Broadcast Music, Columbia Broadcasting System, 441 1, 19-20, 1551, 1562, (1979); Samuelson W. Nordhaus, 516 (12th 1985); Antitrust, 32; Paradox, 178-179; 403a; Easterbrook, Limits 63 Tex.L.Rev. 20, (1984). expanded rapid following restricted sense slower absent intervention. Such counterfactual proposition best circumstances; 45 Following entry, capturing slow; indeed, doubled. During four 1984 gained .4% slightly next year. 46 tends participation restrict output, dispositive. One speculate, tripled, instead doubled, concrete this. Indeed, projection estimating supports opposite inference. forecast planning document account 10% 133, 135. fact, 1988, campaign 354-356. Thus robustly estimated entered. 47 note year presence "appears rate." 257. statement contraction occurred. Whatever mean,2 implications conduct, 48 arguing able exert places reliance behavior. alike, rose degree during late 1980's. 325. 1986 1989, similar amounts. expert testified outpaced taxes, expenditures. 525. moreover, faster differential argues succeeded bringing slow growth, jury, drawn proposes. All question, paid 100 Tr. 227-229. unsettled mid-1980s, sums stickers, giveaways, 206-209, 51 130. activity accelerated decade progressed. 509, 672. Many portions undermining 672, 687-692, 761-763. Especially observable regulable unreasonable draw conclusions 50 relied ignores "subgeneric" 682-686. itself, supposedly sway "Pyramid" 326. manufacturers 50%. 685-686; 147. lowest argue, grew extent. carton leading brand; complains of, 52% 325-326, 685. cumulative attributable subgenerics cancel 508-509, rise, rising collusive dynamic. occurrence Where, expanding increasing, consistent Under conditions, Monsanto, 763, 1470. 52 Quite apart absence sort, particularly anomalous party coerced denied existed: officers directors 394-399, 623-631; 170-174, 64 51-56. seeks explain away testimony businesspeople ascribe "competitive" "collusion" economist would. explanation little, any, weight. found: 53 "This argument stage executives basically depositions. court allowed go economists affidavits stating confused questions asked B[rown] W[illiamson] lawyers mean contradict [their expert] Burnett. However, despite consulted extensively Burnett familiarize concepts contradicted Burnett's theory." F.Supp., 356. Not fail likelihood. whole faced possessed 82-84. break down 315; 404b2, 275-276; 1430e, 181 (1986). pressures situation facing 1980's unmanageable. facilitated environment, fungible small variables coordinate focus. generally 215-315; 1428-1430. Uncertainty greatest enemy. obvious flux. serious 1930's. 128. bound unsettle previous expectations predict other's 56 larger types decreased parallel value-25s, product, wide consumers, wholesalers. required, communicating, variables, stickers monitor. behavior inherent limitations multivariable improbable. Dorfman, System 99-100, (1964); 279. 57 addition, that, respects, implausible retarding fellow "[C]oordination chooses, reason, 'go alone.' 276. undisputed—indeed conceded —that acted supposed natural consequence procompetitive. 15-16; apparent objective entering capture regain position Morris. 75, 130, 209-211. accomplished commitment changed. refused follow 1985. contradicts suggestion industry's players concededly expand compete. 58 willing participate actions understood genuine misinterpreted reaction responses certainly resulted, broken down, perhaps irretrievably. "[O]nce trust breaks hard put back together Humpty-Dumpty, non-collusive over." Economics, 534. signaled offering signal attract smokers entry. eliminated rendered insignificant risk misunderstand move. low, purported already using rebates, generic. executive responsible use wholesaler competed effectively 756. extensive discovery records documents appeared indicated awareness signaling, chance Finally, although desire permits doing means. purchased Plaintiff's Exhibit 4079; 191; 143-147. inevitable recruited outlets expansionary effect. guarantee wholesaler; unsold stock wholesaler. large orders, created strong sell observed, 25, dropping stimulating provided further, stimulus, $10 spent placing cartons 246. uncontested artificially he believed 600-614. alter our analysis. supported validate eyes indisputable otherwise unreasonable, jury's verdict. 564-565, 1928-1929 (referring "documentary prices" "weak" best). Expert useful guide interpreting facts, substitute "expert probative comparison factors" dictate conclusion. 19, 1360, 19. Here, factors: structure, 601-602. Because, explained, IV 62 understand concluded demanding. presumed know this, prohibit. Affirmed. BLACKMUN join, dissenting. (B W) waged petitioner, Myers (Liggett). suit claiming W's violated Act.1 agreed, damages. Appeals, succeed W, independent actor controlling 335, 340-342 (CA4 1992). Today, rejects holding. ante, Instead remanding resolve issues parties, goes voluminous comes "had competition."2 my plainly finding. 67 purpose completely originally immunize brief description 1984; 1985; and, finally, bearing predictability period.3 W third largest Ante, marked kind textbook monopoly.4 necessity "prices demand." Notwithstanding controversy health smoking excise tax, profit margins improved "handsomely" 1972 1983.5 69 developments 2.3%, packages, memorandum described [cigarette] strategic weapon depression era." novel tactic proved successful; generated (RJR), "repositioned" brands, comparable whites. 117-118; prepared internal memoranda developments. 120, 127, 157, 166. RJR, decided "follo[w] precisely pathway" company, "introduction RJR clout generics." 145. planned "branded generic" own, Hallmark, RJR's Doral. 124, 142-144. aggressive approach launch "[s]ame style array" "[s]uperior discounts/allowances." 124. "trading profit" $5.1 half $43.6 125. anticipating "competitive counterattacks," "prepared redistribute entire allowances." stance confined Liggett; outlining plans reference countermoves trading allowances 72 "dual approach" influence manage improve profitability," 123, opportunity "manag[ing] volume." 109. aim "limit growth," 113, potential $342 1988. 146. Though recognized "some position, "more approaches maturity." implement plan shipment announcements schedule distributors, increasing discounts. W's, further. moves countermoves, dust Liggett's.6 forfeited $48.7 projected cost. 338-339. Assessing pre-July tending motivated intent, documentary detailed reported case. wanted details segment." 344, 354 18-Month War 18-month unquestionably constituted covered 13(a).7 justified affirmative defense: justified,8 525, good-faith efforts competitor,9 introductory 91 42. 76 program injury.10 suffered damages million, 28, to, than, forgo 4. period, revenues deficiency $0.30 $15 accept magnitude belief ultimately "managed up" investment. $33.15 carton, $19.75 carton. Over 1989 $46.15 $33.75—an ended Ibid.11 brandeds, narrowed, 338. 78 employed post-1985 unwarranted activity, feel brunt increases. Nevertheless, amply manufacturers.12 existed 3, competition." ____, 2. 209, enacted 1890, 1936, serve protecting common goal, statutes respects. prohibit practice deliberately competitor, enable recover run, Sales elements Neither elements, ____ (record pricing). 81 differ significantly element violation, consequences conduct. thing common: accomplishing objective. conspiracy. joint trade, prohibited 1. Nash 229 373, 378, 780, 782, 1232 (1913). applies "dangerous probability" succeed. Swift 196 375, 396, 276, 279, 518 (1905). cover 730. defined still.13 S.Rep. 74th Cong., 2d Sess., (1936) (Act broadens clause Act).14 discriminations incipiency, effected. 'may' prescribed effect." Corn Refining 324 726, 738, 961, 967, 1320 (1945) quotation marks Or, Report Senate Judiciary Committee proposed "to catch weed seed keep coming flower." S.Rep., scope follows: "There findings injuries respondent's Commission resulted. 'may competition.' careful consideration 'the harmed "may" effect.' Comm'n, 742 [65 969, 1320]." Morton 334 37, 46, 822, 828, 92 1196 (1948). 84 435, (1983) ("In prophylactic purpose, omitted)."). 85 then, need flow handsome century. confident feasibility invest millions dollars outcome. course, viewed background supracompetitive, demand," dramatic margins, 5, supra. surely fair disciplinary persuading forego reductions return policies, restore past. I think clear "reasonable 115 days 2,884 exhibits, deposition excerpts, live deliberated nine 348, 4; Court's contrary rests hodgepodge legal, factual, propositions insufficient, together, overcome assessment evidence. reminds concerned opposed individual harm; emphasis price-cutting instructed, emphasizes notes, expansion exceeds grow 10%, assuming What figures do, answer question: supracompetitive. On point, ample, uncontradicted regularly 1980's, fashion remarkably 1970's admittedly prevailed. ____; Given knowledge history responds dismissively, suggesting activities offset reasons. majority refers related primarily accordingly, narrowed 208-210. Second, speculation inconsistent semiannual promotions. ("at consumer"). dispute presumably resolved favor, aside verdict.15 economics, pro-competitive, hence "boon consumers." true, cases cited clear.16 targeted raises credible ensue.17 None disputes proposition. insists somewhat stronger version decision, supposition "anticompetitive oligopoly," (implausibility 1980's). suppose, professional performers danced better favorite partners outsider, Haydn Mozart.18 event, reasonably intentions assuring continued cooperation. Perhaps error assumption seems pervade much sections opinion: burden proving actuality collusion. (finding pricing), coordination). succession 1985—when $19.75, respectively, $33.75—that help players. clear, plan, 94 respectfully dissent. syllabus constitutes Reporter Decisions convenience reader. Detroit Lumber 200 337, 282, 287, 499. conflict courts 12; 8. referred years' volume; "internal" inevitably measured grew. ." issue: "1. Did States?" 27. instructed "injury competition" well-defined submarket loss-creating "You remember rather therefore, competitor. satisfy simply element, show, preponderance 829-830. notwithstanding verdict, "must evidence." C. Wright Miller, Practice Procedure 2528, pp. 563-564 (1971). Background states "[s]ubstantial level," assume accepts abnormally memorandum, dated May part: "Manufacturer's inflation handsomely leaf automation. margin $2.91/M $8.78/M 1981, 200%. 1982, front, fueled 100% Excise Tax. $10.78/M 1982 [sic] $12.61/M "The public dramatic. weighted pack 56% 1983 (from $.63 $.98)." 127. 4, maximum purchases 8,000 quarter; week later, $0.20 volumes. $0.50, day went $0.43. increases, $0.80 $0.73. 327, 420-421. quantity requisite firmly 42-44, 826-827, "Provided, nothing herein contained differentials allowance manufacture, sale, delivery differing methods quantities delivered." seller rebutting prima-facie furnishing services facilities purchaser furnished competitor." 13(b). "3. intention meet, beat, Inc.?" 27-28. customers, 168-169, 174, "money is," 402, applied lesser nondiscriminatory cut. Aftermath Their entirely lock-step "Q Does you happening promotions? "A stretch imagination. far outstripped lot; up. gone anywhere near Further, warranted making constant years." 509. text broadening Attorney General's Study Laws 1955 Report: "In circumstances, play. smaller rival, frustrates excluding impairing strength. invalidation deliberate slashes destroying accords distinct recognition narrower tests 'injury' added 1936 amendments. feared legislators check victimization businessmen cuts nevertheless impairment wider destructive endangering survival liberalizing amendments Act." 165-166 (1955) (footnotes relies executives, stated fair. Illustrative exchange: want know—yes —sir, say everybody else charged, equitable It's it's price." 396. problem testimony, relates after, 392, ("[T]he I've with, so." Ibid.) Some instance, outside director served 1977 1978 51-56, competitiveness suggest[ing] level" refers. was, tobacco 397-398, congressional committee vouch nature 623-631. give weight presented, therefrom, experts agreed characterization 640-645; 342 (1950). 339-340, 1890-1891, (1990), "so levels." 118, (1986), "inimical" limited approving comments "above costs." 696-698, 1332-1333, Lomar Wholesale Grocery, Dieter's Gourmet Foods, 824 582, 596 1987) (threat shown combined competitor), 484 1010, 108 707, 658 (1988); Double H Plastics, Sonoco 732 351, (CA3) 469 900, 212 1983) (anticompetitive proven inferentially intent), Chicago 246 238, 242, 244, 683 (1918) (in determining violates "knowledge consequences"). Judge Easterbrook point: "Wisdom lags behind "[L]awyers people represent. judge knows lawyers."

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