1. GE v Westinghouse in Large Turbine Generators
GE’s Moves in 1963

2. GE’s Moves Price book Lower book prices
Simplified pricing including examples
Make it easy to determine GE’s bid
Lower book prices
Create public “multiplier” = 0.76 to discount book prices
No exceptions to book x multiplier
Price protection clause
Audit from KPMG
Publish list of orders and quotes

3. Westinghouse’s Response
Adopt GE book
July 64: Announce price increase
Publish orders and quotes
64-75 same multiplier/same book prices
High demand period

4. Key Take Aways Don’t give up Clarity of pricing/threats
Commitment in the form of price protection
Steps to show mutual trust
Game theory matters in turning around an unpromising business landscape.